Latest news with #Thatcher-era
Epoch Times
2 days ago
- Business
- Epoch Times
Overhaul of Thames Water Comes Amid Privatisation, Foreign Ownership Scrutiny
A proposed financial overhaul of Thames Water by a group of its U.S. and UK creditors has emerged against the backdrop of a wider debate over foreign ownership and public accountability in the water sector. Major institutional investors including BlackRock, Aberdeen, and Elliott Management have put forward a plan to restructure Thames Water's £17 billion debt. It would involve injecting £3 billion in new equity and £2 billion in additional funding, as well as writing off several billion pounds of existing debt. 'The plan seeks to break from the patterns of the past by delivering customers' priorities and improved outcomes for the environment in the shortest possible timeframe,' a spokesperson for the creditors told The Epoch Times. However, the group asked for regulatory flexibility in return. They want Ofwat to take a 'pragmatic approach' by easing performance targets and compliance expectations. It comes in contrast to the recommendation by the According to Thames Water, 'constructive discussions' with many of its stakeholders are ongoing, while its board is expected to review the turnaround plan in the coming weeks. Related Stories 5/28/2025 6/3/2025 In response to the creditor's proposal, Ofwat confirmed it is conducting a thorough review. 'Our focus is on assessing whether the plans are realistic, deliverable, and will bring substantial benefits for customers and the environment,' an Ofwat spokesperson told The Epoch Times. The rescue plan by creditors comes after U.S. private equity giant KKR last week Foreign Ownership Since the Thatcher-era privatisation of water in 1989, all major regional suppliers in England and Wales have been privatised, promising increased investment and efficiency. However, in the last decade alone, water companies have awarded over £112 million in bonuses and incentives to shareholders. In response, the government enforced a ban on 'unfair bonuses' for six water companies that failed to meet environmental and customer service standards. This applies to Thames Water, Yorkshire Water, Anglian Water, Wessex Water, United Utilities, and Southern Water. A tanker pumps out excess sewage from the Lightlands Lane sewage pumping station in Cookham, Berkshire, England, on Jan. 10, 2024. Andrew Matthews/PA Wire Campaigners from We Own It, a public ownership advocacy group, Its largest shareholder is the Ontario Municipal Employees Retirement System (Canada), with a 32 percent stake. Other investors include the UK's Universities Superannuation Scheme (20 percent), China Investment Corporation, Abu Dhabi Investment Authority, and Hermes. Elsewhere, foreign capital dominates the landscape. Southern Water is majority-owned by Australian investment giant Macquarie, while Yorkshire Water is split among investors from Singapore, Hong Kong, Germany, and Australia. Only a handful of water companies remain publicly listed, such as Severn Trent, United Utilities, and South West Water (via the Pennon Group). In contrast, water companies in Scotland, Wales, and Northern Ireland remain publicly owned or operated as not-for-profits. Nationalisation Debate Amid growing financial distress and record fines levied by Ofwat, political pressure has intensified for Thames Water to be brought into public ownership. Liberal Democrat MP Charlie Maynard Labour MP Despite growing political momentum for public ownership, the government hasn't confirmed any nationalisation plans. The Water Bill failed to secure government backing in March, as environment minister Emma Hardy warned it could cost more than £200 billion to renationalise the water industry. Speaking at the House of Lords last year, Baroness Hayman of Ullock 'It would take years to unpick the current ownership model, during which time the sector's issues would only get worse. The government instead wants to tackle the situation as quickly as possible by improving the privatised regulated model,' she added. Speaking about official plans to nationalise the water industry, the Department for Environment, Food and Rural Affairs told The Epoch Times that 'it would be inappropriate' to comment on specific commercial cases. PA Media contributed to this report.
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The Independent
28-04-2025
- Business
- The Independent
How can Britain's housing divide be fixed? Join The Independent Debate
The debate over the housing wealth divide between generations is intensifying. Today, homeowners aged 60 and over hold more than half of the UK's £2.89 trillion in owner-occupied property wealth. In contrast, under-35s own just 6 per cent, according to estimates from property firm Savills. Some say older generations have earned their position, having paid off mortgages and ridden the wave of rising house prices. Others argue the system has left younger people locked out of homeownership. Reacting to the figures, Independent reader Kernow pointed out that Thatcher-era policies encouraged homes to become "investment properties," with tax breaks and buy-to-let schemes pushing up prices and "depriving accommodation for the young." They called for tougher taxes on second homes and better incentives for downsizing. Meanwhile, TomHawk defended Boomers, blaming the situation on planning failures and public sector mismanagement: "It has conspicuously failed to provide the infrastructure and housing the country needs." But not everyone agreed. Ajames argued Boomers had a 'privileged life,' benefiting from free education, cheap housing, and generous services while "ramping up national debt" for future generations to shoulder. With property wealth so unevenly spread, the big question is: is this an inevitable result of market forces, or an unfair system that needs fixing? We want to hear from you. Vote in our poll and share your thoughts in the comments – we'll feature the most compelling responses and discuss the results in the coming days. All you have to do is sign up and register your details – then you can take part in the debate. You can also sign up by clicking 'log in' on the top right-hand corner of the screen.
The Independent
06-02-2025
- Business
- The Independent
Government ‘must draw out lessons from Thatcher-era coal pit closures'
Ministers should 'draw out' lessons from Thatcher-era coal mine closures in the move away from oil and gas, a Conservative shadow minister has suggested. David Simmonds, whose great-grandfather worked in a pit at Cwmcarn, South Wales, said the administration led by Margaret Thatcher sought to build infrastructure to 'open up' former coalfield communities. Parliament as 'an open goal for the Government to repair the damage done by Thatcherism'. Yesterday, my constituency was yet again the victim of industry leaving; the workers at the Grangemouth refinery were served their redundancy notices Brian Leishman, MP for Alloa and Grangemouth Labour MP Brian Leishman had earlier warned MPs that the closure of Grangemouth oil refinery in Scotland could have 'strikingly similar social consequences' to the decline in UK mining. Mr Simmonds urged the Government to learn 'some of the lessons that we need to draw out of that for what is often termed the 'just transition' – the intended end of oil and gas as a significant player in our energy industries for the future'. He later added: 'We know we are about to embark on a process whereby the progress that's been made by the UK as a leading nation for decarbonising our economy since the early 1990s, when we began that really major shift away from coal which in the 1950s produced most of our energy and today is contributing to none as the last coal-fire power station in the UK has just recently closed.' Mr Simmonds said the European Economic Community (EEC) food stockpiles accumulated under the Common Agricultural Policy (CAP) to maintain farm prices – known as the 'butter mountains' – were 'not an example of an effective economic intervention' to ease the impact of pit closures. Mr Leishman, the MP for Alloa and Grangemouth, had earlier said: 'Yesterday, my constituency was yet again the victim of industry leaving; the workers at the Grangemouth refinery were served their redundancy notices. 'On site, over 400 highly skilled workers will lose their jobs, and when we factor in the wider supply chain, it will be nearly 3,000 job losses, and like the coal industry, a vital energy creator will be lost forever. 'A different decade, a different government, but nevertheless strikingly similar social consequences will be the result.' After years of failed promises from the Conservative government to level up, the very idea of levelling up seems to have disappeared from Labour's plans as well David Chadwick, Liberal Democrats Mr Chadwick, who is the MP for Brecon, Radnor and Cwm Tawe, warned that 'after years of failed promises from the Conservative government to level up, the very idea of levelling up seems to have disappeared from Labour's plans as well'. He called for a railway in the Swansea Valley in South Wales and said: 'This Parliament is an open goal for the Government to repair the damage done by Thatcherism. 'The party opposite squandered many of its previous 13 years in power, carrying on with a London-centric, banker-friendly form of growth that means younger generations have to leave for the cities like my mum did 30 years ago, and they must not repeat the same mistake today, because across the former South Wales coalfields, the economic reality is dire. 'Wages are lower than the national average, job growth is sluggish, and unemployment remains high.' In his winding up speech, local government minister Jim McMahon referred to his own Oldham West, Chadderton and Royton seat in Greater Manchester and said: 'We're all very proud of Greater Manchester and we all see the red dots in the skyline of Manc-hattan as we call it very proudly and the booming city centre that is Manchester, but the truth is, unless you have those social opportunities where people have the confidence and skills to be able to compete in that new market that is emerging, it can feel a million miles away, and that's really, really important and we do see that.' Mr McMahon said Labour had retained the Long-Term Plan for Towns, packages of up to £20 million of support and added: 'If we don't put the building blocks in place to rebuild industry and pride, then I think we miss a trick.'
