Business
Thames Water unveil £20.5 billion action plan to revive struggling water firm
The creditors of Thames Water have set out plans on how they would deliver £20.5 billion of investment to turn around the troubled supplier’s performance as they look to secure a rescue of the firm.
The supplier’s main creditors – led by a team of 15 investors called the London & Valley Water consortium – have pledged to “fix the foundations” of Thames Water with the mammoth spending proposal put forward to regulator Ofwat.
They are promising an increased focus on improving Thames Water’s poor pollution performance and record on leaks, with targets to cut sewage spills by at least 135 a year.
Thames Water – the UK’s biggest water supplier with around 16 million customers – is on the brink of nationalisation as it struggles under a mountain of debts.
The creditors are looking to secure backing for their plans to avoid Thames Water being put into a temporary special administration regime (SAR), which would effectively wipe out their investments.
Their spending proposals would see them work within the £20.5 billion investment allowance set by Ofwat in its final determination on Thames Water spending and bill rises.
Household bills would not rise by more than the regulator has already approved over the next five years, the group stressed.
But it said the plans would need “billions of pounds of new funding” from the consortium.
It remains in talks over a rescue deal of the supplier that would see them pump in new cash, but ask for leniency in how it is regulated.
The creditors hope to put forward updated plans on a funding deal and debt overhaul for Thames Water within the next couple of weeks.
Mike McTighe, chairman designate of the London & Valley Water consortium, said: “Over the next 10 years the investment we will channel into Thames Water’s network will make it one of the biggest infrastructure projects in the country.
“Our core focus will be on improving performance for customers, maintaining the highest standards of drinking water, reducing pollution and overcoming the many other challenges Thames Water faces.
“This turnaround has the opportunity to transform essential services for 16 million customers, clean up our waterways and rebuild public trust.”
The creditors are the bondholders who now effectively own Thames Water after the High Court approved a financial restructuring earlier this year through a loan of up to £3 billion to ensure it can keep running until the summer of 2026.
The firms involved – which include US and UK investment firms such as Aberdeen, Elliott Management and BlackRock – submitted an initial financial plan in June to overhaul £17 billion of Thames Water’s debts, including investing another £3 billion in new equity and a further £2 billion of funding.
But they also asked for leniency on performance targets and compliance, warning that a “regulatory reset” was needed for the utility, or its performance would likely worsen.
The latest investment plans would see the group commit to spending £9.4 billion on sewage and water assets over the next five year, up 45 per cent on current levels.
Of this, £3.9 billion would be spent on upgrading the worst performing sewage treatment sites, £1.2 billion on helping deliver high-quality drinking water and £2.7 billion on stopping sewage spill incidents.
Longer term proposals would see 1,000km of water mains replaced over the coming decade, with £545 million targeted to replace around 370km by 2030.
Thames Water’s current management has previously said it would need over £24 billion of investment allowance for the next five years and to increase bills by more than Ofwat had agreed.
The government appointed insolvency specialists FTI Consulting last month to step up contingency planning in case the supplier collapses.
A possible rescue deal with US private equity giant KKR collapsed in May, but the government has stressed its preference is for a “market-based solution” rather than a costly temporary nationalisation.
Business
‘Pushed Modi closer to Russia, China’: Ex-Donald Trump aide slams 50% India tariffs; flags setback in ties with US – The Times of India
Former US National Security Advisor John Bolton lashed out at US President Donald Trump on Thursday (local time) for deteriorating US-India relations through a 50% tariff imposition on India, which he claims has driven Prime Minister Narendra Modi towards Russia and China.“The White House has set US-India relations back decades, pushing Modi closer to Russia and China. Beijing has cast itself as an alternative to the US and Donald Trump,” Bolton wrote on X.
He criticised Trump’s tariff decisions, stating they have undermined decades of Western diplomatic efforts to distance India from its Cold War alliance with the former Soviet Union (Russia) and address China’s growing influence.
In multiple other social media posts on Monday (local time), Bolton had claimed Trump’s economic policies have compromised strategic achievements, whilst providing Chinese President Xi Jinping an opportunity to alter East Asian geopolitics.“The West has spent decades trying to wean India away from its Cold War attachment to the Soviet Union/ Russia, and cautioning India on the threat posed by China. Donald Trump has shredded decades of efforts with his disastrous tariff policy,” Bolton posted.“Donald Trump’s unwillingness to consider diplomatic moves in a larger strategic context has given Xi Jinping an opportunity to reset the East,” he added in another post.Bolton, who served as national security adviser (2018-19) under Trump’s first presidency, departed due to disagreements regarding the administration’s foreign policy approach.His observations coincide with New Delhi’s current challenges amid global economic uncertainty, following the US implementation of a 50% tariff on Indian imports, plus an additional 25% due to India’s Russian oil purchases.The statements followed the 25th Shanghai Cooperation Organisation (SCO) Heads of State Council summit in Tianjin, China, where Prime Minister Modi engaged with Russian President Vladimir Putin and Chinese President Xi Jinping in bilateral discussions.According to a Ministry of External Affairs statement on Sunday, Modi and Xi Jinping acknowledged their nations’ roles in maintaining global trade stability during their meeting.In his discussion with Putin, PM Modi highlighted the robust India-Russia relationship, noting their consistent mutual support during challenging periods.The Prime Minister emphasised that collaboration between New Delhi and Moscow remains crucial for international peace, stability and prosperity. Meanwhile, Putin highlighted that this year commemorates the 15th anniversary of the India-Russia ‘Special and Privileged Strategic Partnership’.
President Donald Trump has asked the US Supreme Court to overturn a lower court decision that found many of his sweeping tariffs were illegal.
In a petition filed late on Wednesday, the administration asked the justices to quickly intervene to rule that the president has the power to impose such import taxes on foreign nations.
A divided US Court of Appeals for the Federal Circuit last week ruled 7-4 that the tariffs Trump brought in through an emergency economic powers act did not fall within the president’s mandate and that setting levies was “a core Congressional power”.
The case could upend Trump’s economic and foreign policy agenda and force the US to refund billions in tariffs.
Trump had justified the tariffs under the International Emergency Economic Powers Act (IEEPA), which gives the president the power to act against “unusual and extraordinary” threats.
In April, Trump declared an economic emergency, arguing that a trade imbalance had undermined domestic manufacturing and was harmful to national security.
While the appellate court ruled against the president, it postponed its decision from taking effect, allowing the Trump administration time to file an appeal.
In Wednesday’s night’s filing, Solicitor General John Sauer wrote that the lower court’s “erroneous decision has disrupted highly impactful, sensitive, ongoing diplomatic trade negotiations, and cast a pall of legal uncertainty over the President’s efforts to protect our country by preventing an unprecedented economic and foreign policy crisis”.
If the Supreme Court justices deny the review, the ruling could take effect on 14 October.
In May, the New York-based Court of International Trade declared the tariffs were unlawful. That decision was also put on hold during the appeal process.
The rulings came in response to lawsuits filed by small businesses and a coalition of US states opposing the tariffs.
In April, Trump signed executive orders imposing a baseline 10% tariff as well as “reciprocal” tariffs intended to correct trade imbalances on more than 90 countries.
In addition to those tariffs, the appellate court ruling also strikes down levies on Canada, Mexico and China, which Trump argues are necessary to stop the importation of drugs.
The decision does not apply to some other US duties, like those imposed on steel and aluminium, which were brought in under a different presidential authority.
A new set of stamps is being issued to celebrate the diverse range of wild and domesticated ducks found in the UK.
The stamps have images of 10 duck species and breeds including goosander, Indian runner, mallard duckling, aylesbury and the eider.
Royal Mail worked with Steve Ormerod, Professor of Ecology, Water Research Institute/Cardiff School of Biosciences at Cardiff University, and waterfowl author, Dr Chris Ashton, on the stamps.
There are more than 120 species of duck worldwide, including 22 found in the UK.
David Gold, Royal Mail’s director of external affairs and policy, said: “We are pleased to showcase the beauty and variety of wild and domesticated duck species found across the UK, celebrating our rich wetland wildlife.
“Most of us will recognise some of the ducks on these stamps but we hope that the set will help to raise awareness of the less well-known species.”
Mr Ormerod said: “The UK’s wild ducks are among the most elegant of all our birds. Their diversity of life histories, behaviours and calls evokes the character of habitats ranging from local ponds, lochans and lakes to rivers, wetlands and coasts.
“Ducks have also played a central role in the human history of animal domestication – for example for food, pest control or as protected ‘rare breeds’. This spectrum from cultural connection to wilderness is celebrated in this beautiful collection of Royal Mail stamps.”
The stamps, and a range of collectible products, are available to pre-order from today and go on general sale from September 11.
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