Government denies scrapping Thames Water nationalisation plans amid 'serious concerns' - as minister insists ’no option is off the table’
'We are taking no options off the table when it comes to Thames Water,' Housing Secretary Matthew Pennycook told LBC’s Tom Swarbrick
The Government has denied reports it has scrapped plans to nationalise Thames Water, after the housing secretary insisted that “no option is off the table” over the company’s future.
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Housing Secretary Matthew Pennycook told LBC’s Tom Swarbrick that a report suggesting ministers had ruled out nationalisation was “speculative” and did not reflect Government policy.
“We are taking no options off the table when it comes to Thames Water,” he said.
This comes as the stricken water company has intensified efforts to manage its finances to avoid being nationalised.
On Monday, Thames Water’s creditors revealed plans to appoint four new directors to the board, should their rescue bid be given the green light.
Earlier this month, the struggling water company was announced as one of the water companies given the provisional green light to increase bills between 2027 and 2030, prompting fury from customers.
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Industry watchdog Ofwat listed Thames Water as one of the companies that would benefit from the investment plans, which would help water companies improve networks to manage new housing and data centres, and tackle chemicals to ensure drinking water is safe and reliable.
The water industry has been “failing people for too long”, according to Mr Pennycook, who acknowledged fears around rising bills and a number of serious pollution incidents.
“We've got to do more. We've already done lots as a government to strengthen regulation, toughen enforcement, increase transparency,” he said.
When asked about the growth of data centres, Mr Pennycook acknowledged they brought “challenges” around water and energy use.
But the minister added that many businesses and people in the UK “rely” on AI and that the UK needs data centre facilities to support its “world-class AI sector”.
He said that the decision-making process behind building data centres remained with local authorities, adding: “I'm not going to sit here and specify where they should go.”
He went on: “We've got to plan appropriately for that. I don't think anyone listening to this programme would say that as a country we should shut our ears and say no data centres.”
This comes as plans for a data centre was hit with fierce opposition from residents and the local council in East London.
The decision paves the way for the redevelopment of the Truman Brewery estate near Brick Lane into offices, apartments and a data centre.
The £500 million redevelopment of the former brewery had been heavily criticised by Tower Hamlets Council and local campaigners, who said it would take up land needed for affordable homes and harm the character of the hipster enclave, known for its vintage fashion shops and 24h bagel spots.
The borough has approximately 30,000 families on the social housing waiting list.
The data centre will cover 5,200 sq metres and will be used for high-frequency trading in the City rather than AI.
Save Brick Lane, a campaign group forged of nine local residents groups to block the redevelopment, branded the decision "deeply disappointing".
They said: "Our community should not be expected to accept a noisy, energy-intensive development that will consume enough power for over 15,000 homes while local needs are being discarded for the dictates of the financial district."