Politics
Polanski demands answers on Burnham’s Thames Water betrayal
On 25 August, we reported that PM Andy Burnham had reportedly backtracked on plans to temporarily nationalise Thames Water. While the plan didn’t go far enough, it was better than allowing the company to remain in the hands of Thames Water and its investors. And now, Green Party leader Zack Polanski is demanding answers:
I have written to the Cabinet Secretary to seek assurances that the Prime Minister’s Chief of Staff, who was lobbying for the privatised water industry until recently, has had no involvement in talks about the future of Thames Water. pic.twitter.com/T7QNfFkdWU
— Zack Polanski (@ZackPolanski) August 25, 2026
Conflicts of Interest
The full letter from Polanski reads:
It is reported in the media today that the Prime Minister has ‘shelved’ plans to take Thames Water into administration.
As is well known, the Chief of Staff in Downing Street James Purnell was until his appointment, the Chief Executive of Flint Global, whose clients it is widely reported include members of the privatised water industry, and Thames Water’s bondholders.
The Times reports that the Prime Minister has been ‘advised by officials’ not to go ahead with special administration. In addition to James Purnell, can you confirm that no other officials involved in this process have links to the privatised water industry, and have accepted no hospitality from anyone associated with or acting on behalf of members of the water industry, including Flint Global, post the departure of James Purnell.
It is especially concerning that the Times reports that the Prime Minister has listened to advice that even the half measure of temporary special administration would be costly and run into legal issues. Of course, this is what advisers and lobbyists for the privatised water industry will be saying and it is the ‘advice’ James Purnell would have been making weeks ago. It is also highly unlikely to be true, given the repeated catastrophic failures of Thames Water, including polluted rivers, sky high bills and water shortages, Thames Water could be taken into public ownership right now and Thames Water would not have a legal leg to stand on.
The public and I expect a proper explanation for this decision, including an update to parliament at the first possible time, and assurances that James Purnell has had nothing at all to do with discussions on this crucial matter of public importance. There is a new Prime Minister who has promised to do politics differently, and corporate lobbyists at the heart of government decision-making don’t feel too different at all.
Most of all we need assurance the Prime Minister is not acting in hock to the Thames Water bond holders.
Polanski — Answers needed
Polanski isn’t the only one criticising Burnham. As the pro-nationalisation pressure group We Own It told us on Tuesday 25 August:
If Burnham doesn’t take Thames Water into public ownership, he’ll go down in history as a same-old prime minister delivering sewage in our rivers and spiralling bills to households. This is his one and only chance, if he doesn’t take it he’ll be a laughing stock.
The idea that we can’t take back this company which has literally gone bust, been in breach of its licence for two years and has put forward several proposals for illegal sewage is a joke. It makes a mockery of households, of our entire water system, of the special administration regime, of England. Why should a handful of US creditors – whose own water is 87% publicly owned – cow a British Prime Minister into submission? Why can’t he stand up for us like the Blair government did when Railtrack went bust?
Officials should absolutely be investigating how to reward this failure as little as possible but let’s be clear – the shareholders don’t need compensation, they have already walked away. The creditors are expecting a huge haircut to the debt. So that means just refinancing a vastly reduced debt more cheaply in the public sector. The company can be brought into special administration on two counts – it’s insolvent and it’s failing to fulfil its statutory duties.
Andy Burnham went to court to fight for bus passengers in Manchester. He must continue defending the public interest if he wants to stay popular. The alternative is to rubber stamp the rip off of English households for decades to come. Because there has never been a cheaper or better time to take back Thames Water.
Solutions
If the latest reports are to believed, there may be some hope yet. Apparently, Burnham is considering a change to insolvency laws. This would allow the government to more easily take control of companies like Thames Water. The problem, of course, is that Burnham has promised and considered many things at this point. And we all know who’s whispering in his ear.
Featured image via Matthew Horwood / Carl Court
By Willem Moore
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