Thames Water is downscaling the size of its proposed reservoir near Abingdon and is putting back its start date by five years.

The recession and a number of other factors has prompted the water company to announce today that it did not expect the reservoir to be ready for use until 2026.

The company made its announcement following public comments on its Draft Water Resources Management Plan, which includes the plans to build the reservoir on land between Steventon, East Hanney and Drayton.

The company said the economic downturn and changes to population forecasts had affected the reservoir plans.

In August, the Vale of White Horse District Council challenged the company’s case for the reservoir.

Council Leader Tony de Vere, who chairs the Reservoir Advisory Group (RAG), said: “I am pleased that Thames Water has agreed that there is too much uncertainty to continue with this plan for at least the time being.

“None of us can know what the situation will be in five years’ time and there may be yet more reasons as to why this reservoir should not be built.

“We hope Thames Water spends the next five years doing much greater research into the alternatives, as we suggested last year.”

Terry Cox, who is vice-chairman of RAG, added: “Thames Water said it needed a reservoir in 1990, then changed its mind and it would appear history is repeating itself.

“While I welcome Thames Water’s acknowledgement that the case is simply not strong enough at the moment, I do have concerns about the people who live near the proposed site, having the spectre of this reservoir hanging over them for another five years.

“I hope Thames Water spends the next five years wisely for the sake of those residents.”

Thames Water submitted a statement of response to the Department for Environment, Food and Rural Affairs (Defra), following a public consultation in which 315 individuals and organisations made 2,000 comments on the company’s Draft Water Resources Management Plan.

David Owens, Thames Water’s chief executive officer, said: “Additional water resources will be required by 2020 and, after carefully re-examining all the options, we still believe there is a case for a major new reservoir in Oxfordshire.

“However, in view of the scale of the outstanding uncertainties it is appropriate to promote some smaller schemes first.

“We will continue to develop the reservoir scheme to ensure that it can be operational when needed, currently indicated to be 2026.”