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Thames Water is seeking High Court approval today for a £3bn emergency loan to keep the troubled utility afloat, in a crucial 48-hours for the company and the industry.

At a hearing at the Royal Courts of Justice before Mr Justice Trower on Tuesday, Thames will present the loan as the first stage of a restructuring plan it says is necessary to avoid running out of cash in the spring.

Two days later on Thursday, regulator Ofwat will reveal its “final determination” on water company five-year business plans and how much they will be permitted to increase consumer bills and what return they can offer investors.

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Why are water bills increasing?

It is a crucial moment not just for Thames but for the entire privatised water system, with companies facing increased borrowing costs and pressure to address sewage outflows, climate change and population growth.

Under the restructuring plan, Thames Water’s A-class bondholders will provide a £3bn loan over two and a half years at a rate of 9.75%. The loan would have “super-senior” status, putting it at the front of the queue of the company’s creditors in the event of a default.

The class A bondholders are thought to control up to £12bn of the almost £17bn of net debt at the regulated company level.

Court approval is required as the terms of the loan effectively breach Thames Water’s agreements with its existing creditors by pushing their claims lower down the list of seniority.

More on Thames Water

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August: Water firms face record fines

Should the judge approve the first step, final ratification will come after a meeting of shareholders next month.

Read more: Five charts that explain why water bills are to spike

The move, which requires the support of 75% of creditors, is expected to be opposed by a group of Class B bondholders, holding around £1bn of debt, who say they can offer a similar loan on less expensive terms to the company.

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Sept: Thames Water boss can ‘save’ company

Campaigners are expected to gather at the Royal Courts of Justice to oppose the plan, saying the loan will cost £300m a year in interest and fees, and cost Thames Water customers £250 a year.

The company is expected to tell the judge that it has the support of banks that provide financial derivatives alongside the A class creditors, and that it is the first step in a restructuring intended to attract fresh equity.

Under relatively new legislation introduced in 2020, a judge can approve a restructuring plan if it has the support of 75% of all types of creditor, but if not they can consider a “relevant alternative” that leaves none of them worse off.

Thames Water is likely to argue that the alternative to its restructuring plan would be the company falling into the state-managed Special Administration Regime, which would likely see creditors lose money.

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Police officer punched in face as masked protesters with children march through Canary Wharf shopping centre

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Police officer punched in face as masked protesters with children march through Canary Wharf shopping centre

A group of masked protesters became “aggressive” towards police at Canary Wharf shopping centre after an anti-asylum demonstration, police say.

A group of people entered the shopping centre around 4.30pm and a “small number of masked protesters” then became aggressive towards members of the public and police, the Metropolitan Police said in a statement.

Police issued an order to “prevent people concealing their identity with masks” and a dispersal order was also put in place.

Video seen on social media showed young children among the protesters, with some of them wearing England flags.

Officers said: “We are aware there are young children in the protest area and while we deal with any criminality our officers are ensuring the safety of them is paramount.”

Police said four people were arrested on Sunday afternoon during the protests, including for common assault by a protester on a member of the public, possession of class A and B drugs, assault on police/public order offences and failure to disperse.

“One of our officers was punched in the face – luckily they did not suffer significant injury,” a spokesperson said.

Commander Adam Slonecki, in charge of policing London this weekend, said: “We had plenty of officers on the ground who moved in swiftly to deal with the criminality that occurred inside and outside the shopping centre. We will not tolerate this kind of behaviour.

“Today’s protest saw many community members attend, including women and children, and we worked to ensure the safety of those there to peacefully represent their views. Those who arrive at protests masked and intent on causing trouble will continue to be dealt with robustly at future protests.”

People protest outside the Britannia International Hotel in Canary Wharf. Pic: PA
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People protest outside the Britannia International Hotel in Canary Wharf. Pic: PA

Counter-protesters also assembled outside the Britannia International Hotel. Pic: PA
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Counter-protesters also assembled outside the Britannia International Hotel. Pic: PA

Read more:
PM promises small boat migrants will be ‘detained and sent back’
Reform deputy leader disagrees with archbishop

Protesters from both sides of the divide over the UK’s immigration policies gathered outside the Britannia Hotel in Canary Wharf on Sunday afternoon.

Around a dozen anti-immigration protesters were joined by about 100 counter-protesters holding banners saying “stand up to racism” and “stop the far right” on the other side of the road.

Demonstrators then left the hotel location – kept apart by police.

Sunday’s events in east London follow an incident in West Drayton, west London, on Saturday when a group of masked men were among those who attempted to enter a hotel housing asylum seekers.

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Reform deputy attacks govt for ‘protecting rights’ of illegal migrants – and fires back at Archbishop of York

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Reform deputy attacks govt for 'protecting rights' of illegal migrants - and fires back at Archbishop of York

Reform UK has hit back at both the Archbishop of York and the government following criticism of its immigration policies.

Leader Nigel Farage announced the party’s flagship immigration plan during a flashy news conference held at an aircraft hangar in Oxford on Tuesday.

The party pledged to deport anybody who comes to the UK illegally, regardless of whether they might come to harm, and said it would pay countries with questionable human rights records – such as Afghanistan – to take people back.

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It also said it would leave numerous international agreements, and revoke the Human Rights Act, in order to do this.

The policy was criticised by the Conservatives, who said Mr Farage was “copying our homework”, while parties such as the Liberal Democrats and the Greens condemned it.

More on Migrant Crossings

Archbishop Stephen Cottrell and Richard Tice MP. Pics: PA
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Archbishop Stephen Cottrell and Richard Tice MP. Pics: PA

But the plan came under fire from an altogether different angle on Saturday, when the Archbishop of York accused it of being an “isolationist, short-term kneejerk” approach, with no “long-term solutions”.

Stephen Cottrell, who is the acting head of the Church of England, told Sunday Morning With Trevor Phillips that he had “every sympathy” with those who find the issue of immigration tricky. But he said Reform UK’s plan does “nothing to address the issue of what brings people to this country”, and would in fact, make “the problem worse”.

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In full: Richard Tice on Sunday Morning With Trevor Phillips

Speaking on the same programme, Richard Tice, Reform’s deputy leader, responded to the archbishop’s criticisms, saying that “all of it is wrong”.

The MP for Boston and Skegness said he was a Christian who “enjoys” the church – but that the “role of the archbishop is not actually to interfere with international migration policies”.

Mr Tice then turned his fire on the government, accusing ministers of being “more interested in protecting the rights of people who’ve come here illegally… than looking after the rights of British citizens”.

He accused ministers of having “abandoned” their duty of “looking after the interests of British citizens”.

Mr Tice reaffirmed his party’s policy that the UK should leave the European Convention on Human Rights (ECHR), calling it a “70-year-old, out-of-date, unfit-for-purpose agreement”.

The Reform UK deputy leader also:

• Defended plans to pay the Taliban to take migrants back, comparing it to doing business deals with “people you don’t like”

• Said the Royal Navy should be deployed in the English Channel as a “deterrent”, but added: “We’re not saying sink the boats”

• Urged the government to call an early general election

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Farage ‘wants to provoke anger’

Meanwhile, Bridget Phillipson, the education secretary, told Sky News that Reform “want to provoke anger, but they don’t actually want to solve the problems that we face in front of us”.

She told Sunday Morning With Trevor Phillips the UK had a “proud tradition [of] supporting those facing persecution”.

But she added: “We will make sure that people who have no right to be in this country are removed from this country. That’s right. It’s what people expect. It’s what this government will deliver.”

Ms Phillipson also insisted there “needs to be reform of the ECHR” and said the home secretary is “looking at the article eight provisions”, which cover the right to a private and family life, to see “whether they need updating and reforming for the modern age”.

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However, she refused to say what the government would do if it is found that the ECHR is unreformable. Instead, she defended Labour’s position of staying in the governance of the convention, saying that honouring the “rule of law” is important.

She added: “Our standing in the world matters if we want to strike trade deals with countries. We need to be a country that’s taken seriously. We need to be a country that honours our obligations and honours the rule of law.”

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Sunday Morning With Trevor Phillips

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Asylum seekers to remain at Bell Hotel

Ms Phillipson was also drawn on the recent court ruling in favour of the Home Office, which overturned an injunction banning The Bell Hotel in Epping from housing asylum seekers.

Challenged on whether the government is prioritising the rights of asylum seekers over British citizens, she said it “is about a balance of rights”.

The cabinet minister also repeated the government’s plans to end the use of hotels to house asylum seekers by 2029.

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‘We should have overruled law’

Shadow Cabinet Office minister Alex Burghart said the Conservatives would be willing to leave the ECHR – if this route is recommended to them.

The Tories have asked a senior judge to look into the “legal intricacies” of leaving the convention, which he said is “not straightforward”. He said when the party receives that report, it will then make a decision.

Challenged on whether the Tories will leave if that is what the report recommends, he added: “If that’s what’s necessary, we will do it.”

Mr Burghart also said he believed the previous Conservative government’s biggest mistake was that “we did not go far enough on overruling human rights legislation”, which prevented it from “taking the tough action that was absolutely necessary”.

But he added the Conservatives have now “put forward very clear legislation that would solve this problem” – though he concluded Labour “isn’t going to do it” so the problem “is going to get worse”.

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Archbishop of York Stephen Cottrell tells Nigel Farage ‘kneejerk’ migrant deportation plan won’t solve problem

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Archbishop of York Stephen Cottrell tells Nigel Farage 'kneejerk' migrant deportation plan won't solve problem

The Archbishop of York has told Sky News the UK should resist Reform’s “kneejerk” plan for the mass deportation of migrants, telling Nigel Farage he is not offering any “long-term solution”.

Stephen Cottrell said in an interview with Trevor Phillips he has “every sympathy” with people who are concerned about asylum seekers coming to the country illegally.

But he criticised the plan announced by Reform on Tuesday to deport 600,000 people, which would be enabled by striking deals with the Taliban and Iran, saying it will not “solve the problem”.

Mr Cottrell is currently acting head of the Church of England while a new Archbishop of Canterbury is chosen.

Pic: Jacob King/PA Wire
Image:
Pic: Jacob King/PA Wire

The Archbishop of York, Stephen Cottrell in 2020.
File pic: PA
Image:
The Archbishop of York, Stephen Cottrell in 2020.
File pic: PA

Phillips asked him: “What’s your response to the people who are saying the policy should be ‘you land here, unlawfully, you get locked up and you get deported straight away. No ifs, no buts’?”

Mr Cottrell said he would tell them “you haven’t solved the problem”, adding: “You’ve just put it somewhere else and you’ve done nothing to address the issue of what brings people to this country.

More on Migrant Crisis

“And so if you think that’s the answer, you will discover in due course that all you have done is made the problem worse.

“Don’t misunderstand me, I have every sympathy with those who find this difficult, every sympathy – as I do with those living in poverty.

“But… we should actively resist the kind of isolationist, short term kneejerk ‘send them home’.”

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What do public make of Reform’s plans?

Nigel Farage at the launch of Reform UK's plan to deport asylum seekers. Pic: PA
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Nigel Farage at the launch of Reform UK’s plan to deport asylum seekers. Pic: PA

Asked if that was his message to the Reform leader, he said: “Well, it is. I mean, Mr Farage is saying the things he’s saying, but he is not offering any long-term solution to the big issues which are convulsing our world, which lead to this. And, I see no other way.”

You can watch the full interview on Sunday Morning with Trevor Phillips on Sky News from 8.30am

Mr Farage, the MP for Clacton, was asked at a news conference this week what he would say if Christian leaders opposed his plan.

“Whoever the Christian leaders are at any given point in time, I think over the last decades, quite a few of them have been rather out of touch, perhaps with their own flock,” he said.

“We believe that what we’re offering is right and proper, and we believe for a political party that was founded around the slogan of family, community, country that we are doing right by all of those things, with these plans we put forward today.”

Sky News has approached Mr Farage for comment.

Farage won’t be greeting this as good news of the gospel – nor will govt ministers

When Tony Blair’s spin doctor Alastair Campbell told journalists that “We don’t do God”, many took it as a statement of ideology.

In fact it was the caution of a canny operator who knows that the most dangerous opponent in politics is a religious leader licensed to challenge your very morality.

Stephen Cottrell, the Archbishop of York, currently the effective head of the worldwide Anglican communion, could not have been clearer in his denunciation of what he calls the Reform party’s “isolationist, short term, kneejerk ‘send them home'” approach to asylum and immigration.

I sense that having ruled himself out of the race for next Archbishop of Canterbury, Reverend Cottrell feels free to preach a liberal doctrine.

Unusually, in our interview he pinpoints a political leader as, in effect, failing to demonstrate Christian charity.

Nigel Farage, who describes himself as a practising Christian, won’t be greeting this as the good news of the gospel.

But government ministers will also be feeling nervous.

Battered for allowing record numbers of cross- Channel migrants, and facing legal battles on asylum hotels that may go all the way to the Supreme Court, Labour has tried to head off the Reform challenge with tougher language on border control.

The last thing the prime minister needs right now is to make an enemy of the Almighty – or at least of his representatives on Earth.

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