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Burnham shelves Thames Water administration plans over costs

Published 26 August 2026

Prime Minister Andy Burnham is facing mounting pressure over reports that he has paused plans to place Thames Water into a special administration regime, a move that would have brought the debt-ridden utility under temporary state control. The shift comes as officials warned that such a rescue could cost taxpayers billions of pounds and invite legal challenges, leaving the government caught between a creditor-led rescue plan and demands for full public ownership. Thames Water, which serves around 16 million customers, is burdened with nearly £20 billion in debt and has warned it could run out of cash by the end of the year.

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