I congratulate the hon. Lady on securing the debate. I am delighted to respond on behalf of the Government.
Water is what makes life possible on our planet. It is essential for our health and wellbeing, our economy, the production of food and, of course, clean energy. I want to make it clear from the outset that no matter the individual circumstances of their water or waste water company, the public will always continue to receive those vital services. The Government are committed to ensuring that water companies deliver the performance and environmental outcomes bill payers expect and deserve. Our plan for water will transform our management of the water system, delivering cleaner water for nature and people, as well as securing plentiful supply. The plan is delivering more investment, stronger regulation and tougher enforcement, with water companies investing £7.1 billion in environmental improvements between 2020 and 2025, and an estimated £60 million in capital investment by 2050 to meet storm overflow reduction plan targets.
I want to reassure the House that the Government are prepared for a range of scenarios across all our regulated industries, including across all water companies, as any Government should be. The Government’s key priority is the ongoing provision of water and waste water services. There are plans in place to ensure that there will be no disruption to customers’ water or waste water services, and that any incidents that may occur will continue to be quickly addressed, no matter the financial situation of one’s water or waste water company.
Regarding contingency plans as they specifically relate to Thames Water, as noted to the House previously, Ofwat monitors the financial position of all water companies, including Thames Water, and takes action when water companies and their investors need to strengthen their long-term financial resilience. However, it is important to make clear that it is for the company and its investors to manage the company’s financial resilience within the context of its licence and broader statutory obligations. The Government are confident that Ofwat, as the economic regulator of the water industry, is working closely with all water companies, including Thames Water, and ensuring that action is taken when financial resilience needs to be improved.