Thames Water lenders offer 'golden share' to head off nationalisation
Thames Water's lenders are proposing a new financial rescue package to avoid government nationalization of the utility company. The offer includes a 'golden share' for the government and increased involvement for local authorities.
Why it matters
This deal represents a critical attempt to resolve a long-standing infrastructure crisis in the UK without taxpayer funding.
Image source, Getty Image Image caption, Thames Water's lenders want to let local authorities have more involvement
Thames Water's main lenders are offering the government a "golden share" and more control for local authorities in a bid to stop the troubled supplier from being nationalised.
The government recently rejected a previous rescue proposal, and the BBC understands the lenders are preparing a legal challenge in case the new Andy Burnham-led government takes the firm into public hands.
In his first speech as prime minister on Monday, Burnham said he wanted to see greater public control of "life's essentials".
The new proposal offers local authorities greater involvement in the firm, similar to the relationship between United Utilities and Greater Manchester agreed when Burnham was the city's mayor.
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