Tuesday 21 July 2026 9:07 am
| Updated:
Tuesday 21 July 2026 9:08 am
Andy Burnham has pledged greater public control of utilities (Yui Mok/PA Wire)
The group of creditors vying to take control of Thames Water has said it is willing to grant the government a “golden share” in the company and offer local governments oversight of its operations as it looks to fend off nationalisation by Andy Burnham.In a statement today, London & Valley Water (L&VW), a group of investors including Elliott and Apollo, said it is “eager to engage with new ministers to discuss their priorities and present a revised proposal”.Andy Burnham’s government looks set to put the struggling utility into a special administration regime after he pledged yesterday to take greater public control of “life’s essentials”.Thames has been creaking under a £20bn mountain of debt and warned last week that it had only enough cash to see it through to the end of the year.While the investor group presented a rescue deal to Keir Starmer’s government earlier this year, the offer was rebuffed by former environment secretary Emma Reynolds on the grounds it would penalise customers.L&VW said it would now set out a fresh proposal to ministers that would allow greater public control of the utility while keeping it within private ownership. A golden share would give the government 51 per cent of the total voting rights and allow it to overrule the utility’s other shareholders.“We continue to believe that the L&VW plan is by far the fastest and most reliable route to solving Thames Water’s complex problems and improving outcomes for customers and the environment, and achieves this without any government funding or cost to taxpayers,” a spokesperson for the group said.A special administration regime, which could see Thames Water temporarily nationalised for around 18 months, could cost the taxpayer more than £4bn, according to a report from an administration specialist in 2024.Burnham’s team was reportedly drawing up plans to nationalise the company before he entered Downing Street.The consortium said it was “eager to engage with new ministers to discuss their priorities and present a revised proposal”. City AM revealed the group never discussed its plans with Reynolds directly before she rebuffed the deal and is still yet to engage with Burnham’s team.Thames Water was also in the dark over the new prime minister’s intentions for the company prior to his election as Labour leader, sources told City AM last week.
