Connect with us

Published

on

The private equity firm that had been the frontrunner to lead a rescue of the UK’s largest water provider – Thames Water – has pulled out.

Thames Water Utilities, which is staring down the prospect of a special administration process without fresh investment, said an alternative plan was now under discussion after KKR’s exit from the process.

It is understood that the company hopes a new transaction could be agreed by July.

KKR was handed preferred bidder status back in March as Thames, which serves 15 million customers but has a £22.8bn debt pile, moved to secure fresh equity.

Money latest: Capital gains tax explained for second home sellers

Thames said that KKR had indicated it was not in a position to proceed. No reasons are understood to have been given.

But its withdrawal was announced a week after Thames was handed a record fine by the industry regulator for failures related to its wastewater operations and dividend payouts.

Please use Chrome browser for a more accessible video player

Thames Water hit with huge fine

The move was also divulged shortly after an interim report for the government raised the prospect of a super regulator being created to bolster and streamline oversight of the water industry.

Thames said it was now progressing talks with senior creditors for an alternative to stabilise its finances, and was also planning discussions with the regulator Ofwat on that plan.

The watchdog is understood to be studying a 400-page document which includes proposals for new equity and debt facilities.

It is hoped that a transaction could be completed by next month.

Please use Chrome browser for a more accessible video player

Thames boss defends bonus

Read more money news from Sky News:
Rachel Reeves threatens to sue Roman Abramovich
The rise of the prenup – and why so many are getting them

The company’s chairman, Sir Adrian Montague, said: “Whilst today’s news is disappointing, we continue to believe that a sustainable recapitalisation of the company is in the best interests of all stakeholders and continue to work with our creditors and stakeholders to achieve that goal.

“The company will therefore progress discussions on the senior creditors’ plan with Ofwat and other stakeholders.

“The board would like to thank the senior creditors for their continuing support.”

Cash-strapped Thames secured a £3bn lifeline to tide it over back in March as the company moved to secure fresh investment to guarantee its long-term survival.

It had kept open the prospect of an alternative solution, given there was no certainty over a KKR deal being agreed.

A failure to find new investment again raises the prospect of Thames falling into a special administration process.

That would effectively see the company come under temporary government ownership to maintain vital services until a new owner, or ownership solution, is found.

A spokesperson for the industry lobby group Water UK responded: “Everyone agrees that the water industry is not working. We hope this report will be a starting point for the fundamental reforms the sector needs. We need a less complicated system which allows investment to get quickly to where it needs to go.

“In the meantime, companies are focused on investing a record £104bn over the next 5-years to secure our water supplies, end sewage entering our rivers and seas and support economic growth.”

Chair of the environment committee of MPs, Alistair Carmichael, said: “In our evidence session with Thames Water bosses in May we raised serious concerns that Thames had only pursued one bidder at an early stage for its takeover bid, against the wishes of Ofwat, and highlighted the risks this could pose if KKR chose not to proceed. Unfortunately, our concerns have been realised, putting Thames in a perilous position.

“The Government has shied away from acknowledging the potential impact of this scenario on the public finances and must ensure that any takeover is in the public interest and does not line the pockets of financial institutions further to the detriment of customers and operational performance.”

Continue Reading

UK

Firm linked to Tory peer Michelle Mone breached £122m PPE contract, judge rules

Published

on

By

Firm linked to Tory peer Michelle Mone breached £122m PPE contract, judge rules

A company linked to Tory peer Baroness Michelle Mone breached a government contract of nearly £122m to supply surgical gowns during the COVID-19 pandemic, the High Court has ruled.

The £121.9m sum, the price of the gowns, must now be repaid by the company, PPE Medpro.

The Department of Health and Social Care (DHSC) brought the case, saying it provided 25 million “faulty”, non-sterile gowns.

Money latest: Citroen C3 drivers told to stop using cars immediately

On Wednesday, the High Court said the gowns did not comply with the requirement of having a validated process to demonstrate sterility, and it was not possible for the DHSC to have sold them and recoup the loss.

The company, a consortium led by Baroness Mone’s husband, businessman Doug Barrowman, was awarded the government contract after she recommended it to ministers.

As well as wanting to recover the costs of the deal, the government wanted to recoup the costs of transporting and storing the items, which it said amounted to an additional £8.6m, though the High Court denied the latter request, saying the loss was not proved at trial.

PPE Medpro’s counterclaim that the DHSC should have advised it on how to comply with the contract also failed.

Denied wrongdoing

Both Baroness Mone and Mr Barrowman denied wrongdoing, and neither gave evidence at the trial in June.

She had initially denied involvement in the company or the process through which it was handed the government contract.

However, it was later revealed that Baroness Mone was the “source of referral” for the firm getting a place on the so-called “VIP lane” for offers of personal protective equipment for the NHS.

Yesterday, Baroness Mone accused the government of making her and her husband a “poster couple for the PPE scandal”, in a lengthy online tirade.

The response

In response to the ruling, Baroness Mone said it was “shocking but all too predictable”.

Mr Barrowman said it was “a travesty of justice” and the judge gave the DHSC “an establishment win despite the mountain of evidence in court against such a judgment”.

“Her judgment bears little resemblance to what actually took place during the month-long trial, where PPE Medpro convincingly demonstrated that its gowns were sterile,” he said.

“This judgment is a whitewash of the facts and shows that justice was being seen to be done, where the outcome was always certain for the DHSC and the government. This case was simply too big for the government to lose.”

Ahead of the ruling on Tuesday, PPE Medpro said it intended to appoint an administrator.

The news has been welcomed by Chancellor Rachel Reeves and COVID-19 Bereaved Families for Justice UK.

“We want our money back. We are getting our money back. And it will go where it belongs – in our schools, NHS and communities,” Ms Reeves said.

“Profiting and corruption during the pandemic cost lives,” the families group said. “Those responsible must be held to account.”

Continue Reading

UK

All GP surgeries in England must offer online booking from today

Published

on

By

All GP surgeries in England must offer online booking from today

All GP surgeries in England are required to offer online appointment bookings from today.

Practices must keep their websites and app services available from at least 8am to 6.30pm, Monday through Friday, for non-urgent appointments, medication queries and admin requests.

Many surgeries are already offering online bookings and consultations, but services are typically less effective in working-class areas.

The Department of Health and Social Care says there is a lack of consistency, as some surgeries that offer online services are choosing to switch the function off during busier periods.

The British Medical Association (BMA) has argued safeguards have not been put in place, nor have extra staff been brought in to manage what it anticipates will be a “barrage of online requests.”

The BMA has said GPs are considering a range of actions after voting to enter a dispute with the government over the plan.

Health Secretary Wes Streeting has urged the BMA to embrace the plan, saying the union’s resistance is “a real disservice to so many GPs” who have already introduced the service.

Health Secretary Wes Streeting says booking a GP appointment should be as easy as booking a takeaway. Pic: PA
Image:
Health Secretary Wes Streeting says booking a GP appointment should be as easy as booking a takeaway. Pic: PA

‘As easy as booking a takeaway’

The minister said the government will help practices that need assistance to implement the plan, “but we’ve got to modernise”.

Mr Streeting told the Labour Party conference: “Many GPs already offer this service because they’ve changed with the times.

“Why shouldn’t be booking a GP appointment be as easy as booking a delivery, a taxi, or a takeaway? And our policy comes alongside a billion pounds of extra funding for general practice and 2,000 extra GPs.

“Yet the BMA threatens to oppose it in 2025. Well, I’ll give you this warning; if we give in to the forces of conservatism, they will turn the NHS into a museum of 20th century healthcare.”

Read more from Sky News:
Starmer will take ‘no more lectures’ from Farage
Streeting says Labour ‘need Angela Rayner back’

The measure is part of the broader government pledge to transform the NHS.

Sir Keir Starmer has revealed plans to establish a nationwide “online hospital” by 2027, enabling patients to receive treatment and care from home.

The government said the initiative could provide up to 8.5 million additional NHS appointments within its first three years.

Available via the NHS app, it will allow patients to schedule in-person procedures at local hospitals, surgical hubs or diagnostic centres, reducing delays.

Continue Reading

UK

Farage isn’t racist, says PM – as he’s challenged over Trump’s ‘Sharia law’ comment

Published

on

By

Farage isn't racist, says PM - as he's challenged over Trump's 'Sharia law' comment

Sir Keir Starmer has said he does not believe Nigel Farage or Reform voters are racist – and also refused to label Donald Trump’s claim that London wants “Sharia law” as such.

The prime minister told Sky News political editor Beth Rigby the president’s claim – made while criticising the capital’s mayor, Sir Sadiq Khan, during a UN summit last week – was “nonsense”.

Asked if it was racist, considering Sir Sadiq is a Muslim, Sir Keir said: “I have been really clear that the idea that in London we’re introducing Sharia law is rubbish.”

He said the mayor – who has branded Mr Trump “racist, sexist, misogynistic” – was doing a “very good job”, but also pointed to his “very good relationship” with the president.

Sir Keir also insisted he does not think Mr Farage or Reform supporters are racist, after targeting the party in his Labour conference speech and claiming its leader “hates Britain”.

Earlier in the week, Sir Keir called Reform’s freshly announced immigration policies “racist” and “immoral”.

Asked if he thinks Mr Farage is a racist, he said: “No, nor do I think Reform voters are racist.

“They’re concerned about things like our borders, they’re frustrated about the pace of change.

“So I’m not for a moment suggesting that they are racist.”

He said he was “talking about a particular policy”, which would see Reform axe the right of migrants to apply for indefinite leave to remain, ban anyone who is not a UK citizen from claiming benefits, and force those applying for UK citizenship to renounce other citizenship.

Please use Chrome browser for a more accessible video player

How did the PM perform at conference?

Reform ‘taking country down road of toxic division’

Sir Keir also refused to say whether he thinks Mr Farage is dangerous, saying: “I think the fight at the next election is going to define us as a country for years to come.

“I think it’s a dangerous moment for the country.”

He said he would not “get into labelling the man”.

“I’m talking about the ideas and what he stands for and what I stand for,” he added.

“I think that taking our country down the road of toxic division where you don’t want to fix problems because if they’re fixed, you lose your reason to exist, I think that is dangerous for our country.”

Please use Chrome browser for a more accessible video player

Starmer’s ‘anti-Reform party’ gamble

Farage: Starmer unfit to be PM

Mr Farage reacted to Sir Keir’s speech by accusing him of being “unfit to be the prime minister of our country”.

“I used to think the prime minister was a decent man, somebody that I could talk to and chat to,” he said.

“We might disagree on our worldview, but I thought he was a profoundly decent human being. I am completely shocked at his behaviour.

“I hope when he wakes up tomorrow morning he feels ashamed of what he has done. This is a desperate last throw of the dice for the prime minister who’s in deep trouble, a prime minister who can’t even command the support of half of his own party.

“But I’m sorry to say, I now believe he is unfit to be the prime minister of our country.”

Continue Reading

Trending