RACHEL REEVES FACES POTENTIAL THAMES WATER NATIONALIZATION – The water supplier’s court battle threatens to push it into special administration
Chancellor Rachel Reeves may be forced to nationalize Thames Water just days before her Spring Statement, potentially disrupting her spending plans.
The Treasury is preparing contingency measures for the UK’s largest water supplier as a looming court battle threatens to push the company into special administration. Despite a High Court ruling last month approving an emergency loan from lenders, Thames Water has yet to access the £1.5bn lifeline due to an appeal from rival investors and MP Charlie Maynard.
With a hearing set for next week, the company risks running out of funds by March 24, potentially triggering a taxpayer-funded bailout. Sources indicate a 50-50 chance of collapse, which could derail efforts to secure new investment from firms such as KKR and Castle Water.
The situation has raised concerns about the stability of the UK’s privatized water industry, with critics arguing that years of mismanagement and mounting debt have left essential utilities vulnerable. A government takeover of Thames Water would mark one of the largest nationalizations in recent history, sparking debate over the long-term future of water services in the UK.
