A consortium of creditors backing a £10 billion rescue plan for Thames Water has announced the appointment of former Labour minister Lord John Hutton as the independent chair designate of the company’s board, pending government approval. Thames Water is Britain’s largest water supplier, serving around 16 million customers across London and the Thames Valley.
The London & Valley Water group, which comprises lenders to the struggling utility, has proposed a leadership and governance overhaul as part of a broader turnaround strategy to avoid nationalisation. Alongside Lord Hutton, the consortium plans to appoint four new directors to the Thames Water board, including Liz Barber, former CEO of Yorkshire Water; Dame Bernadette Kelly, ex-permanent secretary at the Department for Transport; and Clive Selley, former head of BT Openreach.
Lord Hutton, who served as a Labour Member of Parliament from 1992 to 2010 and held various cabinet positions—including business secretary, work and pensions secretary, and defence secretary—brings extensive experience in public policy, energy, and infrastructure. He has also previously chaired industry bodies such as the Nuclear Industry Association and Energy UK. In a statement, Hutton emphasized the importance of delivering high customer service standards and environmental responsibility to the region’s residents.
The rescue plan follows years of financial distress for Thames Water, which has been battling mounting debt and liquidity issues. The company recently requested an additional £2.4 billion from its creditors to continue operations. Government officials, including Prime Minister Andy Burnham, have expressed concerns about the proposed recovery strategy. Burnham, prior to taking office, had supported nationalisation and has urged officials to reconsider existing plans and present more radical solutions for the company’s future.
Supporting the proposed turnaround, Thames Water’s current restructuring lead, Mike McTighe—a specialist in corporate turnarounds who was initially slated to become chair—will assume the role of vice-chair designate under the new arrangements. McTighe is expected to work closely with the management and board as part of the company’s 10-year recovery programme.
The creditors’ consortium has been engaged in ongoing negotiations with government ministers and regulators to secure approval for their plan, which aims to protect the company’s operations while meeting regulatory and financial requirements. The outcome of these discussions will determine whether Thames Water proceeds under creditor-led ownership or becomes nationalised amid the ongoing financial challenges facing the utility.