Burnham pushes Whitehall to devise bold new strategies for ailing Thames Water

Andy Burnham told Whitehall ministers to abandon current proposals for rescuing Thames Water and to generate a fresh set of bold measures. Among the concepts under review is swapping about £100 million of outstanding environmental fines for a government share in the utility, giving the state a say while easing creditor pressure. The prime minister is also open to spending public funds or pursuing litigation to achieve a more decisive outcome, a shift from the approach of his predecessor.

Angela Eagle is working on legislation that would remove a historic cap on public ownership of water firms and potentially overhaul the special administration regime. Critics argue that partial equity swaps fall short of Burnham’s pledge to fully nationalise the company, while some suggest an immediate special administration could force a transition to public control. The debate highlights the broader test of the government’s ability to manage medium-term infrastructure challenges beyond short-term cost-of-living measures.