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The revelation that ministers are considering bringing Thames Water into temporary public ownership has reopened the fierce debate over the privatisation of the country’s water industry.

The sudden resignation of the company’s chief executive and Sky’s exclusive report into government contingency plans for the firm’s potential collapse comes amid growing calls for change following a string of controversies and scandals to hit the sector in recent years.

‘Vast improvement’

The current system of private monopolies dates back to 1989 when Conservative prime minister Margaret Thatcher sold off the publicly-owned water and sewage industry in England and Wales for £7.6bn.

She vowed it would lead to a new era of investment, improve water quality and help bring down bills. Her government also wrote off all debts and established Ofwat to regulate the industry.

Supporters argue that the water industry is now significantly better, while also acknowledging improvements are still needed.

Water UK, the industry body which represents firms, said on the 30th anniversary of privatisation in 2019 that the situation had “vastly improved” with a fall in supply problems, pollution, and leaks thanks to nearly £160bn worth of investment over the decades.

It also claimed that “average bills today are broadly the same as 20 years ago, once inflation is taken into account”.

However this is disputed.

Thames Water

‘The most egregious rip off’

Opponents say privatisation has led to soaring bills, poor performance and years of under-investment, and claim that the pay of executives and shareholders has been prioritised at the expense of long-suffering customers.

They also point to a National Audit Office study in 2015 which found that average household bills had risen 40% above inflation since 1989.

Water firms have also accrued £54bn in debt since privatisation – but paid out dividends to shareholders of £66bn, according to an analysis by The Guardian newspaper last year, with 20% of bills going towards servicing debt or paying out dividends on average.

Those calling for renationalisation include Labour’s former shadow chancellor John McDonnell, who responded to Sky’s latest report on Thames Water by describing it on Twitter as “the most egregious rip off” of all the firms.

Regulator row

Meanwhile regulator Ofwat has also been accused of lacking the necessary teeth to take on water companies.

Critics include the Liberal Democrats, who have called for the body to be abolished and “replaced with a tough new independent regulator with real powers”.

The government has vowed to increase penalties, with Environment Secretary Therese Coffey proposing earlier his year measures including unlimited fines for firms caught polluting.

Public opinion

Most of the public support renationalisation of the water industry, according to opinion polls.

YouGov found in September 2022 that 63% of the public believed it should be run “entirely in the public sector”.

Even among Conservative voters the idea is popular, with 58% in favour, according to the same survey of more than 1,700 adults.

However there appears to be little appetite for such a move from the government, while Labour has backtracked on supporting the policy.

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A huge sewage spill caught on camera in Cornwall

Scandals

For or against privatisation, public dissatisfaction at water firms remains following a string of scandals and controversies.

Water UK confirmed earlier this year that bills would see the biggest increase in almost 20 years from April.

The 7.5% hike means average customers are now paying £31 more annually this year – taking the typical bill to £448.

The industry body then made an an unprecedent public apology following mounting fury over raw sewage being released into Britain’s waters.

Figures from the Environment Agency revealed it was pumped into England’s rivers and seas at least 301,091 times last year – an average of 824 a day.

Water UK said campaigners had been “right to be upset about the current quality of our rivers and beaches”.

But there was then further anger when firms admitted a planned £10bn investment in measures to tackle the issue would be funded by a “modest increase” in customers’ bills.

Water leaks have become another major issue – especially at a time of shortages and record high temperatures.

South East Water, which this week introduced a hosepipe ban for two million people in Kent and Sussex, has enraged customers over supply issues.

Residents in East Sussex said they had been left without water for 23 days despite the firm admitting that its reservoirs were topped up and said its infrastructure had struggled to cope with demand.

Meanwhile another firm, Welsh Water, admitted earlier this year that it been under-reporting the amount of leakages it was responsible for.

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Ruth Kelly apologises on behalf of Water UK for sewage in rivers

Multi-million pound profits and eye-watering pay packets for firms have further fuelled discontent.

Thames Water reported pre-tax profits of £493.5m in the six months to September 2022, despite the firm introducing a hosepipe ban for its 15 million customers during the year.

In 2021 the firm paid out £11m compensation after it was caught overcharging customers.

Read more:
Ministers weigh contingency plan for collapse of Thames Water
Thames Water boss resigns with immediate effect

The boss of the company who resigned, Sarah Bentley, was reportedly set to receive pay and perks worth £1.6m this year.

It came after Ms Bentley said earlier this year how she was “heartbroken” about the company’s historical failings – while admitting there had been “decades of underinvestment”.

Sky News understands that talks over the future of Thames Water remain at a preliminary stage and the contingency plans may not need to be activated.

Either way, the pressure and scrutiny on such firms is unlikely to go away any time soon.

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The King, Prince William and Kate attend Duchess of Kent’s funeral – as Buckingham Palace says Queen withdrew due to illness

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The King, Prince William and Kate attend Duchess of Kent's funeral  - as Buckingham Palace says Queen withdrew due to illness

The King, Prince William and the Princess of Wales have attended the funeral of the Duchess of Kent.

The trio were joined by other royals at Westminster Cathedral for the requiem mass – a Catholic funeral – the first to be held for a member of the Royal Family in modern British history.

Pic: Reuters
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Pic: Reuters

Pic: PA
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Pic: PA

Pic: Reuters
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Pic: Reuters

Katharine, Duchess of Kent, who became the oldest living member of the Royal Family on the death of Queen Elizabeth II in 2022, died at the age of 92 on 4 September.

The Duchess of Kent at the Wimbledon tennis Championships in 2012. File pic: PA
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The Duchess of Kent at the Wimbledon tennis Championships in 2012. File pic: PA

It emerged earlier that the Queen had withdrawn from attending while she recovers from illness.

Buckingham Palace said on Tuesday that Camilla, 78, is recovering from acute sinusitis, with the withdrawal raising questions over her attendance for US President Donald Trump‘s state visit, which begins at Windsor on Wednesday.

The King and Queen were due to attend the funeral together. Pic: PA
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The King and Queen were due to attend the funeral together. Pic: PA

That visit is being hosted by the King, but the Queen is understood to be hopeful she will recover in time to attend all royal elements of Mr Trump’s trip, which includes a lavish state banquet.

A Buckingham Palace spokesperson said: “With great regret, Her Majesty the Queen has withdrawn from attendance at this afternoon’s requiem mass for the Duchess of Kent as she is recovering from acute sinusitis.”

The Duke of Kent was informed and was said to fully understand the decision, wishing her a speedy recovery.

The Queen had travelled down from Scotland this morning and is currently travelling to Windsor, where she will rest.

“Her thoughts and prayers will be with the Duke of Kent and all the family,” the spokesperson added.

During the service, Pope Leo XIV paid a personal tribute to the Duchess of Kent, praising her “legacy of Christian goodness” in a message delivered during her funeral.

In words read out by Archbishop Miguel Maury Buendia, the pontiff highlighted her “dedication to official duties”.

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Pics: PA

Prince Andrew and Sarah, Duchess of York, were seen approaching Westminster Cathedral for the service.

Pic: Reuters
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Pic: Reuters

Former Formula 1 world champion Sir Jackie Stewart and actresses Rula Lenska and Dame Maureen Lipman were also among the mourners.

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Southport killer’s parents took delivery of machetes and knives and tried to hide them from him, inquiry told

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Southport killer's parents took delivery of machetes and knives and tried to hide them from him, inquiry told

The parents of the Southport killer took delivery of a number of machetes and knives, which they tried to hide from him, the inquiry into the stabbings has been told.

Alice da Silva Aguiar, nine, Bebe King, six, and Elsie Stancombe, seven, were murdered at a Taylor Swift-themed class on 29 July last year by Axel Rudakubana, who was jailed for a minimum of 52 years.

He seriously injured eight more girls and two adults who had tried to stop him.

Nicholas Moss KC, counsel to the inquiry into the killings, said the purchase of weapons by Rudakubana – referred to by the inquiry throughout as AR – is “important because it will highlight vulnerabilities in the law against the purchase of knives, crossbows and machetes”.

Read more:
The missed chances to stop Rudakubana
Grandfather who tackled killer

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Southport: Parents of victims speak

Killer ‘used dad’s details to order knife’

On the purchase of weapons, Mr Moss said it is “also important because it is one significant factor in the questions which we need to explore with his family, particularly his parents”, asking “What did they know of the weapons purchases?”

The inquiry was told that his father or mother appeared to have taken delivery of the knife that was used in the attack, and that it was ordered via Amazon under an IP address suggesting the use of a Virtual Private Network.

Rudakubana used his father’s details instead of his own when ordering the knife, which was approved by Amazon because the name and address provided were those of an adult and matched up with credit check agency information.

A knife identical to the one Rudakubana used in the Southport attack. Pic: Merseyside Police
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A knife identical to the one Rudakubana used in the Southport attack. Pic: Merseyside Police

Mr Moss said the package was shipped to an “Ax Rud” at his home address near Southport, arriving at around 5.40pm on 15 July 2024.

Ring camera footage from the property of Rudakubana’s next-door neighbour showed the delivery, but the recipient could not be seen.

The driver entered the recipient’s year of birth as 1978 and confirmed that they appeared to be over the age of 25.

Rudakubana’s father’s date of birth is in 1975, and his mother’s is in 1972, Mr Moss told the hearing.

‘Parents accepted – and hid – weapon deliveries from son’

Mr Moss then said Rudakubana’s parents had accepted deliveries of weapons and hidden them from him on multiple occasions.

A machete taken by police after the attacks. Pic: Merseyside Police
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A machete taken by police after the attacks. Pic: Merseyside Police


A June 2023 delivery of a 22-inch machete – ordered using the driving licence of a woman named Alice born in 1991 and living in Sunderland – was found on top of the wardrobe in Rudakubana’s parents’ bedroom in sealed packaging.

In his statement to Merseyside Police after the attack, Rudakubana’s father said he had signed for a parcel containing knives that was addressed to someone with a British-sounding name, and he hid the parcel on top of his wardrobe despite his son asking for it.

An October 2023 order of a machete with a 16.5-inch blade – ordered using a driving licence for Samuel, a black man born in Nigeria in 1961, living in Uxbridge – was found by the police after Rudakubana’s prosecution, still in its packaging and unopened.

Rudakubana ordered a third machete that month, called a Kukri Congo 488 JKR with a blade length of 30.5cm from Huntingandknives.co.uk, again using Samuel’s driving licence.

That machete was found in the search of Rudakubana’s home in a black holdall under the bunk beds in his bedroom.

The inquiry is taking place at Liverpool Town Hall. File pic: PA
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The inquiry is taking place at Liverpool Town Hall. File pic: PA

‘Parents scared of Rudakubana’s behaviour’

The inquiry heard that Rudakubana’s parents had a “fear” of their son’s response if they asked him questions about packages or attempted to tidy his room.

Mr Moss said they were scared that he may be violent towards them, towards his older brother or cause damage to the house, and that they had noticed a “marked deterioration” in his behaviour after being excluded from the Range School for possessing a knife in 2019.

“However, it may be said to be apparent that AR’s parents were aware of other aspects of AR’s conduct that might have been expected to give rise to a concern,” he added.

The inquiry has asked Rudakubana’s parents about any steps that they took to recover knives from their son, and whether they considered reporting the incident to the police or any other agency.

The inquiry continues.

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Labour peer Lord Glasman got a ‘discreet suggestion to shut up’ after warning No 10 about Mandelson

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Labour peer Lord Glasman got a 'discreet suggestion to shut up' after warning No 10 about Mandelson

A Labour peer has claimed he was “discreetly” told to “shut up” by Number 10 after issuing warnings about the appointment of Peter Mandelson as US ambassador.

Maurice Glasman, who was the only Labour figure to attend Donald Trump’s inauguration, said he was shown “photos of Peter Mandelson blowing out birthday candles with Jeffrey Epstein” while in the US in January.

The peer told Sophy Ridge on the Politics Hub that he reported this back to Downing Street, and was given a “discreet suggestion to basically shut up about that”.

Lord Mandelson was sacked as the UK’s ambassador to the US last Thursday after details of his close relationship with disgraced financier Mr Epstein emerged in the media.

Politics Live: Speaker grants emergency debate on Mandelson

He had always admitted to having known Epstein, but emails between Lord Mandelson and the convicted paedophile showed the diplomat had sent messages of support even as the financier faced jail for sex offences in 2008.

Lord Glasman, who founded the Blue Labour movement in 2009 as a counter to New Labour, told Sophy that he “held the line” on Lord Mandelson even as he was presented with photographs of the ambassador and Epstein together.

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Peter Mandelson was sacked as the UK's ambassador to Washington on Thursday. Pic: PA
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Peter Mandelson was sacked as the UK’s ambassador to Washington on Thursday. Pic: PA

He said he “reported back to No 10, that really I would think again about this appointment because really [his dismissal] was bound to happen”.

“It was not out of the clear blue sky, was it?”

The peer said he was asked to send back a report on the matter, which he did, and “that was that”.

“I did say when I got back, I’d think again about this publicly. And then I did get a discreet suggestion to basically shut up about that. And I did.”

Sir Keir Starmer said on Monday he would have “never appointed” Lord Mandelson as US ambassador if he knew then what he knows now.

The prime minister said Lord Mandelson went through a proper due diligence process before his appointment.

But, he added: “Had I known then what I know now, I’d have never appointed him.”

Sir Keir said he knew before Prime Minister’s Questions on Wednesday that Lord Mandelson had not yet answered questions from government officials, but was unaware of the contents of the messages that led to his sacking.

He said Lord Mandelson did not provide answers until “very late” on Wednesday, which was when he decided he had to be “removed”.

Lord Mandelson has said he regrets his relationship with Epstein, claiming repeatedly he wishes they had never met.

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