The prime minister has ordered officials to devise bolder plans for Thames Water, including converting fines into a government stake, as he seeks a way to bring the utility under public control without expensive litigation.
01Summary
- 01Andy Burnham is urging advisers to consider options previously deemed unfeasible, including spending taxpayer money and going to court.
- 02One option involves converting about £100m of outstanding environmental fines into a government stake in the company.
- 03Thames Water recently asked creditors for an additional £2.4bn and is running out of cash.
- 04Government lawyers believe placing Thames into special administration is difficult as it remains financially afloat and maintains services.
- 05Angela Eagle is working on a water bill to lift a Thatcher-era cap on government ownership of water companies.
02Why it matters
The fate of Thames Water, which serves 16 million people, is seen as a test of the government's ability to bring utilities under public control and address long-term challenges beyond immediate cost-of-living support.
Pulse AIAsk about this story
Answers are generated by AI from the story summary; they are not investment, health or legal advice.
