Burnham urges officials to come up with more radical options for Thames Water
Summary
Prime Minister Andy Burnham is asking government officials to find new, bolder plans to deal with Thames Water, a company facing money problems. He is considering options like turning unpaid fines into government ownership stakes and is willing to spend taxpayer money or use courts to take more control of the utility.Key Facts
- Thames Water is running out of money and recently asked creditors for an extra £2.4 billion.
- Burnham has promised to bring essential services, like water, under public control.
- One idea is to convert £100 million in unpaid fines into a government stake in Thames Water.
- Burnham has said he is willing to spend government money and go to court to take over the company.
- The government is working on changing laws to make it easier to take control of water companies.
- Officials had two main options: strike a bailout deal with debt owners or use a special bankruptcy process called SAR (special administration regime).
- Thames Water’s creditors once offered a £10 billion rescue plan, which was rejected before Burnham became prime minister.
- Burnham’s approach is different from previous leaders, focusing on bolder, less constrained options.
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