Thames Water rescue deal threatened by uncertainty over next prime minister

A rescue deal for Thames Water is under threat because of a potential change in prime minister, government insiders have said. Ministers are negotiating a takeover deal for the stricken water company with a consortium of creditors led by American investment firm Elliott Management. But government sources said that deal, which some expected to be concluded this month, has run into problems in part because of the uncertainty surrounding Keir Starmer’s position as prime minister. Starmer’s most likely successor, the Greater Manchester mayor Andy Burnham, has talked about bringing utility companies under public control, with his supporters advocating for him to start with Thames Water if he enters Downing Street. One senior source in the environment department said: “Things are changing every day – it’s very uncertain.” They acknowledged the uncertainty about who will be prime minister by the end of the year but said they were unhappy that details of the deal had appeared in the press. “We aren’t very impressed that things keep getting leaked by the creditors,” they said. They added that there was currently “little direction” from the top of government. A government spokesperson said: “The government will always act in the national interest on these issues. …