Burnham urges officials to come up with more radical options for Thames Water

Andy Burnham has told officials to develop more radical ways to take Thames Water into public control, making the struggling utility an early test of his pledge to bring essential services under government ownership. The options could involve public spending and court action, which his predecessor’s approach sought to avoid.

Thames Water is short of cash and has asked creditors for an additional £2.4bn; creditors had previously proposed a £10bn rescue plan. One option would convert about £100m in outstanding environmental fines into a government stake, giving ministers some influence but falling short of full nationalisation. Other proposals include changing the company’s licence and using a special administration process, although these could face legal challenges.