GMB, the union for water workers, is calling on the UK government to take a stake in Thames Water following news that owner Macquarie Group is looking to divest its stake in the utility.

The GMB said the UK government currently has no national water strategy and Thames, like many operators, has a number of challenges ahead of it, not least the water storage pressures in the South East. The decision from Macquarie to divest its stake in Thames Water is the perfect chance for government to set the strategic and operational direction of the water, according to the union.

Eamon O’Hearn Large, lead officer for the Water Industry, said:

“The active involvement of government in the UK's largest water company could ensure that long-term decisions are taken in the best interests of UK customers and the workforce without the need to satisfy ever-increasing levels of debt repayments to foreign-based investors.”

“If the Government is serious about tackling offshore investments and structures designed to minimise tax then it could start by addressing the complexity of the water industry companies many of which make the Panama papers appear simple by comparison."

Ahead of the start of the AMP6 investment programme for 2015-2020, the GMB said the current structure of the privatised companies and the regulator needed to be scrapped , describing it as "a costly failure."

The GMB wants to see the water industry return to public control and the equity in the privatised water companies converted to long term debt with a fixed return, issued by the public sector.