What specific legal mechanism is Andy Burnham considering changing to enable public control of utilities like Thames Water?

Andy Burnham is considering changing the special administration regime (SAR) to make it easier to put companies such as Thames Water into insolvency proceedings and then take control of them afterwards.

Why is the current special administration regime seen as a barrier to taking Thames Water into public ownership?

The current SAR is a barrier because companies can only be taken into administration if they are insolvent or unable to provide a basic level of service — neither of which currently applies to Thames Water due to continued creditor support — and because administrators are legally required to maximise returns to creditors, making it difficult for the government to assume ownership without paying a significant price.

Burnham Considers Insolvency Law Changes to Nationalize Utilities

Aug 26, 2026

UK Prime Minister Andy Burnham is exploring amendments to insolvency laws to facilitate public control of utilities like Thames Water and energy firms, aiming to address debt and service failures despite creditor resistance.

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