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Burnham asks officials for more radical Thames Water options, Guardian reports

The prime minister has asked advisers to revisit plans for the struggling utility, according to the Guardian, as ministers weigh potential public ownership measures.

Official portrait of Andy Burnham
Context photograph: File portrait of Andy Burnham, photographed in 2026. Official portrait of Andy Burnham MP 2026 (cropped 3x4) 2, © House of Commons (resized and converted to WebP). CC BY 3.0.Image sourceImage licence: CC BY 3.0
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Prime Minister Andy Burnham has asked officials to develop more radical options for Thames Water in England, the Guardian reported on 19 October, citing sources familiar with his thinking and government sources. The direction puts the struggling utility at the centre of his pledge to bring essential services under public control, but no course of action has been chosen.

Options for Thames Water

One idea under consideration would convert about £100m in outstanding environmental fines into a government stake in Thames Water, according to the Guardian. That could give ministers a say in how the company is run. The report said some people involved viewed such a stake as falling short of outright nationalisation.

Officials are also considering removing Thames Water’s licence, seeking special administration and bringing it out of that process without compensating existing creditors, the Guardian reported. The report said such a move would be expected to face litigation. These are options under discussion, rather than announced decisions.

Financial pressure and proposed water reforms

Thames Water has asked creditors for another £2.4bn as its cash runs short, according to the Guardian. Creditors have proposed a £10bn rescue plan. The report said government lawyers considered special administration difficult while creditors continued to keep the company financially afloat and services continued. Those constraints help explain why ministers are examining other ways to gain influence over the utility.

A broader change to the rules was already in preparation. Environment Secretary Angela Eagle is developing a Water Bill that could remove limits on government ownership of water companies and alter the special administration regime, the Guardian reported. In its September announcement, the Department for Environment, Food & Rural Affairs said the bill would lift limits on government share ownership in major water and sewerage companies in England, allowing a wider range of future interventions.

The government said it would set out further water-sector reforms in a 10-year plan later in 2026. The Guardian’s account of Burnham’s instruction rests on unnamed sources; the government has not publicly announced which, if any, of the reported options it will pursue for Thames Water.

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