Pressure mounts for Thames special administration as Burnham becomes PM

(by Karma Loveday)

A water announcement is rumoured to be among the flurry of quick-off-the-mark policy positions expected from Andy Burnham, who takes up post as prime minister today. The new leader is reported to be keen to hit the ground running with his message of change by taking prompt action in key areas.

There is speculation that the water announcement will concern special administration for Thames Water. Pressure for this is growing. Last Monday, Labour’s Clive Lewis handed a letter signed by 112 MPs to environment secretary Emma Reynolds, calling for the Thames creditors’ “outrageous” deal to be rejected and for the company to be placed in special administration “without delay”. Lewis is also running a campaign calling on Burnham to meet with frontline water campaigners to discuss public ownership of water – ahead of any meetings with water company leaders or regulators.

Meanwhile, Ofwat chair Iain Coucher told Reynolds by letter that Ofwat shared the concerns she raised about the London and Valley Water (L&VW) consortium deal in mid-June. Coucher said L&VW is now working on a revised proposal, which Ofwat will consider if requested to do so.