Politics · United Kingdom · 7 hrs ago
Burnham asks officials to consider stronger action on Thames Water
Prime Minister Andy Burnham has ordered a fresh look at Thames Water's future as the struggling utility runs short of cash.
Thames Water serves customers in England, and its creditors have been asked for an extra £2.4bn.
One proposal would turn about £100m in unpaid fines into a government stake, giving ministers some influence over how the company is run.
Burnham has promised to bring essential services under public control, but taking Thames Water into state ownership could cost billions or lead to a lengthy court fight.
Officials are also considering placing the company into a special administration process, while a planned water bill could make future state takeovers easier.
Officials are being asked to examine options beyond existing plans, though the company could challenge some proposed measures in court.
Andy Burnham has asked officials to consider more radical options for dealing with Thames Water.
The company is running out of cash and has asked creditors for an additional £2.4bn.
One option under discussion is to convert about £100m in outstanding fines into a government stake.
Burnham previously said he would nationalise Thames Water, but officials face financial and legal obstacles.
The government is also working on a water bill that could change public ownership rules and the industry’s bankruptcy regime.
- Who
- Andy Burnham, the prime minister, has asked officials to consider options for Thames Water.
- What
- He wants them to develop more radical ways to address the company’s problems, including options involving public ownership.
- When
- The request is reported on 19 October 2026; the article does not give the date it was made.
- Where
- Thames Water; officials across Whitehall are considering options.
- Why
- Thames Water is running out of cash, and the government is seeking a way to address its problems without necessarily spending billions of pounds or facing a lengthy court battle.
This story does not have two clearly opposing sides.
Burnham said he would nationalise Thames Water.
Government insiders say he was presented with the options of a bailout deal with the American hedge funds that own the company’s debt or pursuing a special administration regime.
The Guardian reported that Burnham had asked policy officials across Whitehall to consider options that had not previously been considered feasible.
- Outstanding environmental fines
- About £100m
- Additional funding sought
- £2.4bn
- Creditors’ proposed rescue plan
- £10bn
- Possible public stake
- Convert about £100m in outstanding fines into a government stake
What people are saying
There are more options than people have assumed to date including ones that have never been properly considered
look at all the options and not feel constrained