Reform deputy leader Richard Tice urges Andy Burnham to seize control of Thames Water

Richard Tice, the deputy leader of Reform, has repeated a demand for Thames Water to be placed into a temporary form of public ownership and said he feels "gut-wrenching fury" over the seven-figure remuneration packages handed to the company's top executives as it teeters on the brink of collapse.

In a letter to Andy Burnham, Mr Tice called on the new prime minister to "buy out" Thames Water's equity and debtholders for the token sum of £1 and place Britain's biggest water company into a special administration regime (SAR).

He said parliament should be recalled to debate such a move, and warned: "The whole investment world must realise that while we believe in markets and competition, we will not allow the taxpayer to be shafted."

Money blog: Follow the latest

Mr Tice also urged Mr Burnham not to be "scared of threats of legal action by aggressive lawyers acting for the hyenas" - a reference to Sky News's revelation at the weekend that Thames Water's creditors have engaged litigation specialists to sue the government if it rejects their rescue proposal.

On Tuesday, the London & Valley Water consortium, which accounts for about £17bn of Thames Water's debt, said it was confident it could deliver a plan consistent with the new PM's desire for "greater public control" of water companies.

It said in a statement that it had "evaluated potential new local public control supervisory structures which can be beneficial to customers through the company's operations, designed in the public interest", and said it wanted to share details of its plans with Angela Eagle, the new environment secretary.

"In addition to a new public interest supervisory structure with enhanced local representation for local authorities and regional leaders, the consortium is willing to make significant new commitments to grant greater controls and oversight to ministers, implemented through a 'Golden Share'," the consortium's spokesperson added.

Mr Tice's letter claimed that Thames Water met the tests for being placed into a SAR on the basis that "it cannot meet its debts and is effectively insolvent".

"It also cannot meet its operational obligations to the regulator, Ofwat," he wrote.

The Reform deputy leader said that "parliament and the country are both aghast and sick of" the pay packages handed to Thames Water's bosses while the company's creditors simultaneously seek "to waive hundreds of millions in fines".

Thames Water said last week that Chris Weston, its chief executive, had not received any performance-related pay for the last financial year.

The L&VW consortium also rejected the charge that it was seeking environmental leniency from regulators, adding in its statement on Tuesday: "L&VW is not seeking any change to Ofwat's existing enforcement guidance or the Environment Agency's existing enforcement and sanctions policy.

"No immunity from enforcement and fines under these policies will be given to the company.

"The plan will create a clear path to environmental compliance as quickly as possible."

(c) Sky News 2026: Reform deputy leader Richard Tice urges Andy Burnham to seize control of Thames Water