A clip of former shadow chancellor John McDonnell calling out exorbitant profits of water companies has resurfaced in the wake of the Thames Water crisis.
The UK’s largest water company is scrambling to find extra cash as it handed out millions of pounds worth of dividends to shareholders and bonuses to top bosses in recent years.
Shareholders of the firm said on Thursday that industry regulations make its business plan “uninvestible”, after previously agreeing to an emergency funding package.
The stark update highlights the deepening financial woes for the firm which is sitting on a debt pile of £14.7 billion.
It has come under pressure from water regulator Ofwat to improve its financial performance amid mounting concerns over its future.
Despite the troubles, Thames Water revealed in December that it paid a £37.5 million dividend to a parent company.
When asked to explain the move by Ofwat, Thames said the money had been moved to help pay its debts.
In the year to the end of March 2023, it paid out about £45 million in dividends, and the previous two years it handed out a combined £53.9 million.
Here’s John McDonnell pointing that out, and being told he “doesn’t understand capitalism”.
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