Thames Water, like other water companies, had no debt at the time of privatisation. But since 1989, these utility firms have borrowed vast sums to pay out more than £65 billion in dividends. Privatisation was of course supposed to drive investment. Instead it has fallen. Taxpayers and bill payers have been rinsed, and it is not over yet.
Shareholders in Thames Water today withheld a planned injection of £500 million of much-needed “survival” funding, sparking calls for the firm to be placed into special administration. This comes only months after it was revealed that ministers had drafted plans for the nationalisation of the heavily-indebted company. This would not come cheap.
If Thames Water were at least providing a half-decent service, it would be one thing. But the company has been hit with tens of millions of pounds of fines in the past five years due to leaks of untreated sewage into rivers. Yesterday, it was revealed that rowers in the Boat Race were told not to enter the Thames due to the risk of E. coli.
Water must continue to flow, but it would be an outrage of the highest order if households or government were forced to turn on the spending taps to bail out a company that has been mismanaged in the interests of shareholders, without a second thought for its customers.
Lessons for Labour
As night follows day, Labour now seeks to be the party of levelling-up. Launching its local elections campaign, leader Sir Keir Starmer and his deputy Angela Rayner criticised the Prime Minister for effectively abandoning the policy central to the premiership of Boris Johnson.
The Standard has never opposed levelling-up as a concept. We cannot leave everything to the market, and it is right that economic growth be spread throughout the nation. But the fact is that no one living in the West Country or the great cities of the North will be better off if London is deliberately damaged. And all too often, levelling-up has had the effect of levelling-down the capital.
London may be a Labour city, but the party should be warned: if it follows down the path the Conservatives have taken and loses interest in the capital, it should expect repercussions in the ballot box.
Easter eggstravaganza
Big nights out, Easter menus and a free indoor egg hunt — perfect for a rainy day (and there may be several). Today’s Standard is packed with things to do for readers of all ages to make the most of the bank holiday weekend. There will be bunnies.
