Home Business News Thames Water told by Rees-Mogg they should ‘safely go bankrupt’ as pension holders are at risk

Thames Water told by Rees-Mogg they should ‘safely go bankrupt’ as pension holders are at risk

3rd Apr 24 2:01 pm

Jacob Rees-Mogg has furiously blasted Thames Water and said that Thames Water should “safely go bankrupt.”

Rees-Mogg said that the Water company who will not rule out their customers to pay a 40% rise that their assets should be “sold” to pay for their spiralling £15 billion in debts.

Last week the chief executive of Thames Water, Chris Weston warned that if there is no funding by the end of 2025 then the company could enter into special administration, meaning that taxpayers will end up picking up the whopping bill.

The Tory MP Rees-Mogg wrote on X, “Thames Water may safely go bankrupt and the assets sold to meet its debts.

“In current circumstances any supplier to Thames Water should demand cash on delivery as they would usually be unsecured creditors in the event of an insolvency.”

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If Thames Water enters into bankruptcy then there are grave fears the UK pensions could be at risk as almost 20% of the shares in the beleaguered company are owned by “pension scheme for the academic staff of UK universities.”

Speaking today on Radio 4’s Today Programme, Sir Robert Goodwill, chairman of the Environment, Food and Rural Affairs Select Committee said, “I think the situation at Thames (Water) is still of considerable concern.

“They are around about 80% geared, that is like having an 80% mortgage on your house.

We need to ensure this company does get itself on to an even keel financially so we can move forward, but the Government is ready to step in if necessary.

“The primary role of the Government is first of all to protect customers, and secondly to protect the environment.

“I think we all realise that we need more investment in cleaning up our water now that we are testing those outpours and know what is going on.

Sir Robert added, “We do need more investment but that should not be done in a way that allows these companies to get away with the irresponsible way that many of them have been run in the past.”

The Chancellor Jeremy Hunt has said the Treasury are monitoring the situation “very carefully.”

Hunt was asked by reporters if the government will step in to support the troubled company, he said, “Our understanding is that the company is still solvent and today’s news should not have an impact on the services received by customers.

“Obviously, there are parts of the country where the service has not been up to scratch … overall we will continue to watch the situation very carefully.”

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