STORY
A proposed rescue deal for Thames Water has reportedly been affected by political uncertainty around the future of the Government. The Guardian reported that ministers have been negotiating with a consortium of creditors led by Elliott Management over a possible takeover deal for the heavily indebted water company.
Government sources told the newspaper that the talks had run into difficulties partly because of uncertainty over whether Keir Starmer would remain Prime Minister. The report said some potential investors were concerned that Andy Burnham, if he eventually entered Downing Street, could take a more interventionist approach to utilities and public ownership.
A Government spokesperson said ministers would act in the national interest and that Thames Water remained financially stable, while the Government remained ready for all eventualities, including special administration if necessary. Thames Water has been attempting to avoid financial collapse after building up debts of more than £17 billion.