Ministers have looked to allay fears around the impact of Thames Water potentially going under as the regulator vowed to work with the sector to deal with its debt levels.
Work and Pensions Secretary Mel Stride said there were “contingency plans in place for any eventuality” as Thames Water battles to finance the £14 billion of debt on its books following interest rate rises.
It comes as several reports suggested concerns about Thames Water’s finances had now broadened to other firms in the industry.
In 2017, former shadow chancellor John McDonnell took Damian Green to task over water privatisation.
He pointed to the money Green earned when he was a director of a water company as evidence that privatisation helped “rich people”.
After accusing McDonnell of “not understanding capitalism”, the Labour man fired back:
“You certainly do, don’t you, as you were one of those people who made a fortune out of the water industry.”
“You were an associate director of a company in the water industry while you were an MP. Yes you were and you made quite a profit out of it. £18billion of profits paid out to shareholders during your period when you were there.
“We’re going to take that money and instead of using it as dividends for shareholders for rich people like you, we’re going to ensure it covers the cost.”
Watch the clip in full below:
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