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Thames Water bidder says it is offering £1bn extra cash injection

about 6 hours ago
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A bidder for Thames Water has said it would inject £1bn more into the struggling utility company than rival proposals if it gained control.John Reynolds, the chief executive of the independent water retailer Castle Water, said the current plans under discussion with creditors to rebuild Thames Water’s finances does not go far enough and does not properly address its environmental crisis.Castle Water would provide a cash injection of at least £1bn over current proposals, he told the Times.“No one wants a restructuring that does not stick.The negotiations are not heading anywhere,” he said.

“You cannot compromise on the pollution problem.It has to be resolved and that means changing the way the company spends its money.”Thames Water, which supplies water to about 16 million people, has been on the verge of collapse for several years as it struggles under the weight of net debt of £17bn, built up over the decades since privatisation.Its lenders, led by a group of hedge funds including the combative US firms Elliott Investment Management and Silver Point Capital, have effectively taken over Britain’s biggest water company.Their turnaround plan includes writing off billions of pounds of debt, and proposals that mean Thames Water may not fully comply with rules on pollution of England’s waterways for as long as 15 years.

Reynolds told the Times that there should be “zero tolerance” of serious pollution incidents.“There has to be investment upfront without which you cannot sort it out,” he said, adding that his plans would target the ageing Mogden sewage works in west London.The extra investment, he told the paper, could be freed up by the creditors taking a greater haircut on their liabilities and with an extra injection of equity investment.The alternative to a creditor-led turnaround plan is a special administration regime, under which the water company would come under temporary government control to impose debt write-offs and find a buyer.Reynolds, who is a former investment banker and turnaround specialist, said that talks between creditors and Ofwat, the industry regulator, to restructure Thames had stalled.

However, a spokesperson for the creditor group, London & Valley Water, denied that talks were not progressing and said it still aimed to gain approval for its plan by Christmas.Castle Water is a relatively small company, backed by the property empire of the billionaire Pears family, and co-founded by the Conservative party treasurer, Graham Edwards.It bought Thames Water’s non-household water and sewerage retail business in 2016.Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionLate last year, Castle Water reportedly offered to inject £4bn into Thames in return for a majority stake.A spokesperson for London & Valley Water said: “It is simply not true that discussions have stalled.

Thames Water needs £5bn of urgent funding from committed and experienced new investors to deliver improved outcomes for its customers and employees,We are working hard to secure a solution as quickly as possible,“The London & Valley Water plan will invest £20,5bn over the next five years to fix the foundations, upgrade the network and reduce pollution so that Thames Water can once again be a reliable, resilient and responsible company for its 16 million customers,”A Thames Water spokesperson said: “Discussions between Thames Water Utilities Ltd’s senior creditors, the London & Valley Water consortium, Ofwat, and other regulators in relation to a potential market-led solution to the recapitalisation of the company are continuing.

“TWUL remains focused on delivering a recapitalisation transaction which delivers for its customers and the environment as soon as practicable,”Ofwat was approached for comment,
politicsSee all
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Angela Rayner declines to rule out running for Labour leader as she condemns infighting

Allies of Angela Rayner say the former deputy prime minister will seek to renew her public profile in the coming months and would be likely to run in a future leadership contest.In her first major interview this weekend, Rayner condemned the “arrogant tittle-tattle” and Labour infighting dominating the past week. Rayner, often considered as a potential successor to Keir Starmer, declined to rule out running for the job or returning to frontline politics, saying she had “not gone away”.However, those close to Rayner, who had been seen as a frontrunner to succeed Starmer until her shock resignation over underpaid stamp duty, say she was significantly shaken by the impact on her family. They said that would be the key factor over whether she would run and that it was nonsense that she was plotting any imminent challenge

about 24 hours ago
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When reality bites: the rapid rise and chaotic fall of Reform UK in Cornwall

Resignations, suspensions and infighting lead to party losing crown of highest number of seats in the county“I know whenever I come back here next,” Nigel Farage told a jubilant crowd of hundreds in a leisure centre in Redruth, “Reform UK will become a dominant force, not just in Cornwall politics, but in British politics.”That was in February and when the local elections arrived three months later it appeared Farage’s prophecy was in part coming true – Reform took 28 seats on Cornwall council, the highest number of any party.But during his speech at Carn Brea leisure centre, Farage also warned his rapturous supporters “we have to convert theory into reality” – and reality in Cornwall is now biting.Six months on from the local elections – after which Reform was unable to form an administration, leaving the Liberal Democrats and independents to set up a ruling coalition – the party’s presence in the county is in disarray following weeks of resignations, suspensions and infighting that mean Reform UK no longer holds the highest number of seats in the authority.Critics say that along with the chaos in the Reform-led council of Kent, the farcical scenes in Cornwall, where Reform act as the official opposition are further evidence that the party is not capable of delivering beyond a protest vote

1 day ago
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Wes Streeting accused of ‘chaotic and incoherent approach’ to NHS reform

Wes Streeting has been accused of taking a “chaotic and incoherent approach” to reforming the NHS, which makes it unlikely the government will hit its own targets, according to a damning report by the Institute for Government (IfG).The report praises elements of how the health secretary has managed the health service in his first year in office, including improving performance and staff retention in hospitals. Thepay settlement he reached with resident doctors last year avoided a winter plagued by NHS strikesBut it also criticises significant aspects of his performance, including the way he handled the abolition of NHS England and his lack of action to stem the exodus of senior GPs.The findings threaten to puncture Streeting’s reputation after a turbulent week during which he was forced to deny accusations from allies of Keir Starmer that he was lining up a leadership challenge against the prime minister.Stuart Hoddinott, the IfG’s associate director and the author of the report, said: “There have been some positive steps: performance is trending slowly upwards in hospitals, there’s been a genuinely large increase in GPs and the rate at which hospital staff are leaving their jobs is the lowest on record outside the pandemic

2 days ago
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Nigel Farage is today’s Enoch Powell and his appeal down to slow economy, says minister

Nigel Farage is “today’s incarnation of the politics of Enoch Powell”, the business secretary, Peter Kyle, said at the Co-operative party conference.Kyle described Reform UK as “far right”, while stressing that boosting economic growth was needed to “build an economy and a politics that people can trust to deliver for themselves, their families and their communities”.He told the conference: “The truth is that without securing higher, sustained economic growth, reconnecting people and politics, generating trust in the potential of democracy and importance of good government becomes almost impossible.“And the appeal of the parties of the far right – with their dogma of disruption, division and despair – it becomes, too, alluring.”Kyle added: “We see it today with Reform, just as we did in previous times with the National Front and the British National party

2 days ago
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‘They all think Keir is done’: how push to protect Starmer’s job backfired spectacularly

If there’s one thing the Labour party can agree on this week, it is that efforts by Keir Starmer’s allies to shore up his position backfired spectacularly.By briefing journalists that he would face down any challenge and accusing Wes Streeting of leading an advanced plot to overthrow him, figures around the prime minister managed only to expose the weakness of his position.The sharks were already circling – there is no shortage of senior Labour politicians convinced they can do a better job of running the country. And the botched briefing operation on Tuesday night was proof to many MPs that Starmer is leading an ineffectual No 10 operation careering towards a crushing defeat in Scotland, Wales and English local councils next May.This impression solidified on Friday when Downing Street ripped up its carefully trailed plans to increase income tax in the budget – a move seen by others in government as the latest “panicked” attempt to protect Starmer’s position

3 days ago
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Treasury won’t cut threshold for higher rate income tax, say sources – UK politics live

This is from Pippa Crerar, the Guardian’s political editor, on where we stand this morning after all the fallout from the budget income tax U-turn. She confirms that sources are now ruling out cutting the thresholds for paying higher rates of income tax.She says government insiders claim the change is all down to better-than-expected fiscal forecasts, and that Labour opposition to the proposal was not a factor.Where we are on budget after revelation Rachel Reeves will no longer hike income tax rates- Treasury confirms that stronger than expected OBR forecasts means fiscal gap is closer to £20bn than previously speculated £30-£40bn. Reeves also wants headroom of around £15bn in addition

3 days ago
businessSee all
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FCA’s first deputy CEO calls for stronger grip on vital tech firms

about 9 hours ago
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Asking prices fall as UK housing market hit by budget speculation, Rightmove says

about 15 hours ago
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Joe Rigby obituary

about 21 hours ago
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Merchants’ ‘victory’ over credit card fees will just complicate things more for them

about 24 hours ago
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UK watchdogs need to step in on rip-off bills, which are bad for consumers and the economy | Heather Stewart

1 day ago
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‘I think the city is falling apart’: Leicester braces for a make-or-break budget

1 day ago