Prime Minister Andy Burnham has directed government officials to develop more aggressive approaches to resolving the ongoing Thames Water crisis, moving beyond conventional remedies. Multiple policy experts and advocates have outlined potential strategies for intervention.
Tax accountant Richard Murphy has advocated for immediate emergency legislation to establish a new state-owned water company with a management structure prepared to assume control of Thames Water’s operations. Murphy cited the 1971 nationalization of Rolls-Royce as a precedent, arguing the water supply crisis represents an equivalent national emergency. He emphasized that the legislation should transfer Thames Water’s assets and operations to the new entity while leaving existing financial liabilities with the original company, avoiding government assumption of accumulated debt. Murphy contended Thames Water faces financial insolvency and raised doubts about the company’s viability into 2027, noting its failures in maintaining water quality and environmental protection obligations.
University College London law professor Ewen McGaughey has recommended court action to restore public control, suggesting the special administration procedure within the 1991 Water Industry Act could accomplish this with minimal cost. McGaughey pointed out that privatization generates estimated annual costs of up to £22 billion to consumers through shareholder returns and interest payments, while public ownership could cost significantly less. He argued that creditor lawsuits would lack legal merit and recommended the government revise accounting standards to prevent public water company borrowing from contributing to national debt calculations.
Cat Hobbs of We Own It has called for Thames Water’s license to be revoked immediately, noting the company has requested an additional £2.4 billion from creditors. Under the 1991 legislation, licenses can be removed if companies prove insolvent or fail statutory duties regarding water supply, environmental protection, and wastewater management. Hobbs projected that public ownership could generate annual savings of £3 billion to £5 billion through reduced financing costs and eliminated shareholder dividends.
All three proposals cite significant cost advantages to consumers and cite international precedents for public water management, though they differ in implementation mechanisms and timelines.
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