Key facts
- Thames Water is effectively insolvent with nearly £19 billion in debt.
- Reform UK deputy leader Richard Tice proposed nationalizing Thames Water for £1.
- Tice argued that investors and lenders should absorb the losses from Thames Water's failure.
- He called for Andy Burnham to recall Parliament to approve the acquisition.
- The company is reportedly facing special administration in the coming weeks.
Reform UK deputy leader Richard Tice has urged Greater Manchester Mayor Andy Burnham to nationalize Thames Water for a nominal sum of £1, arguing that the company's lenders and shareholders should bear the financial consequences of its failure. Tice likened the situation to predators picking over a carcass, criticizing the fees being paid to bankers, accountants, and PR firms while customers face higher bills.
Thames Water is reportedly struggling with nearly £19 billion in debt, an increase of £1.9 billion from the previous year, and is considered effectively insolvent. It also faces challenges in meeting its operational obligations to regulator Ofwat, meeting the criteria for a special administration regime. Reports suggest the current prime minister intends to place the company into special administration within weeks.
Tice supports this move, provided that no compensation is paid to lenders and shareholders, advocating for a 100% write-off of their investments. He estimates that over £5 billion in capital is required to stabilize Thames Water. Tice emphasized that while Reform UK believes in markets, they will not allow the taxpayer to be exploited, particularly by foreign private equity firms. He called on Andy Burnham to recall Parliament during the summer to approve such a significant acquisition, contrasting it with Labour's previous stance and criticizing the current leadership.
The situation highlights a broader dissatisfaction with the handling of Thames Water, with Tice suggesting that the current leadership's approach is unacceptable and that investors must face the consequences of their failed investments.