Burnham seeks radical options for Thames Water rescue

Summarised from 2 outlets · Updated 20 Oct, 12:08 · Archive

Prime Minister Andy Burnham is asking officials to explore new approaches to fixing Thames Water, moving beyond earlier nationalisation plans.

Prime Minister Andy Burnham has instructed Whitehall officials to abandon their existing plans for Thames Water and develop more radical alternatives for addressing the company's crisis. Thames Water is facing severe financial difficulties, sinking under debts of more than £20 billion, and recently requested an additional £2.4 billion from creditors.

Burnham previously pledged to nationalise Thames Water, but officials have struggled to identify a pathway to do so without spending billions of pounds or becoming embroiled in lengthy court proceedings. Government sources say the prime minister has now told policy officials to consider options previously regarded as unfeasible, including those that require spending taxpayer money or pursuing legal action.

One option being examined involves converting approximately £100 million of outstanding fines into a government stake in the company. This would save creditors money whilst giving ministers influence over its operations. The government has instructed officials to 'look at all the options and not feel constrained', a departure from the approach under Burnham's predecessor. One source described Thames Water's fate as a 'litmus test' of whether the government could address medium-term challenges.

How it is being reported

• Andy Burnham pleads for 'more radical' options for crisis-stricken Thames Water after reality hits for PM's nationalisation vowThe Prime Minister is reported to have urged his advisers to go back to the drawing board and create new plans for fixing the debt-laden firm.Daily Mail · 20 Oct, 11:53
• Burnham urges officials to come up with more radical options for Thames WaterExclusive: Utility seen as ‘litmus test’ of PM’s promise to bring ‘essentials of life’ under public control Andy Burnham has told officials to rip up their plans for how to fix Thames Water and present him with more radical options for what to do with the stricken company. In an early test of his promise to bring “the essentials of life” under public control , the prime minister is urging his advisers to go back to the drawing board and create a new list of policies for the utility. Continue reading...The Guardian · 19 Oct, 19:37

In this story: Andy Burnham · Thames Water · Whitehall

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