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The group of lenders which want to take control of Britain’s biggest water utility and keep it out of government ownership are to pledge to the industry regulator that they will not offload the company before the end of the decade.

Sky News has learnt that Thames Water‘s largest creditor group, which account for the bulk of the company’s £20bn debt pile, will promise to retain ownership until it is in a sufficiently healthy position to attain a stock market listing.

The commitment to retain ownership until around 2030 is noteworthy because that is the date when the next regulatory price-setting cycle – known as an Asset Management Plan – is due to come into effect.

The creditors’ pledge will form part of a package to be submitted to Ofwat by the Class A creditors as soon as this week.

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It is designed to dispel any suggestion that the group of lenders might seek to offload Thames Water midway through a turnaround plan aimed at putting the company back on a sustainable long-term footing.

The creditors will also commit to not paying a dividend to shareholders for the length of the transformation plan or its return to the stock market, according to an executive at one of the participating funds.

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Earlier this month, the London & Valley Water consortium – which includes Elliott Management and Apollo Global Management – set out proposals for a £20.5bn investment and turnaround plan.

Its focus on reducing pollution incidents and leaks – which have triggered hundreds of millions of pounds in fines for Thames Water and destroyed the company’s reputation – is aimed at persuading Ofwat and the government that the investors have a viable plan to run one of the country’s most important businesses.

Thames Water has more than 16 million customers, accounting for more than a quarter of Britain’s population.

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August: Is Thames Water a step closer to nationalisation?

In a statement issued four weeks ago, the chair designate, Mike McTighe, said its investment pledge made it “one of the biggest infrastructure projects in the country”.

“Our core focus will be on improving performance for customers, maintaining the highest standards of drinking water, reducing pollution and overcoming the many other challenges Thames Water faces,” he said.

“This turnaround has the opportunity to transform essential services for 16 million customers, clean up our waterways and rebuild public trust.”

The creditors are trying to agree a private sector-led solution to the crisis at Thames Water weeks after Sky News revealed that the government had put insolvency practitioners on standby to oversee its collapse into a Special Administration Regime (SAR).

Steve Reed, the environment secretary prior to last month’s cabinet reshuffle, signed off the appointment of FTI Consulting to advise on contingency plans for the company to be placed into a SAR – meaning it would be temporarily nationalised.

Rachel Reeves, the chancellor, has since said privately that the Treasury’s preference is for a private sector rescue of Thames Water.

Under the consortium’s plans, Thames Water’s largest group of creditors would in aggregate inject and write off as much as £18bn across its capital structure.

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Thames Water’s existing shareholders, which include the Universities Superannuation Scheme and an Abu Dhabi sovereign wealth fund, wrote off the value of their investments in the company months ago.

The company faces a deadline in the coming weeks to appeal to the Competition and Markets Authority against Ofwat’s final determination on its next five-year spending plan.

Ofwat ruled earlier this year that Thames Water can spend £20.5bn during the period from 2026, with the company arguing that it requires a further sum of approximately £4bn.

Thames Water was fined a record £123m several months ago over sewage leaks and the payment of dividends, with Ofwat lambasting the company over its performance and governance.

It has also been engulfed in a row over the legitimacy of bonuses paid to chief executive Chris Weston and other bosses, even as it attempts to secure its survival.

Under new laws, Thames Water is among half a dozen water companies which have been barred from paying bonuses this year because of their poor environmental records.

The creditor group was effectively left as the sole bidder for Thames Water after the private equity firm KKR withdrew from the process, citing political and reputational risks.

The Hong Kong-based investor CK Infrastructure Holdings (CKI), which already owns Northumbrian Water, has sought to re-engage in talks about a rescue deal but has gained little traction in doing so.

Thames Water’s fate is also being hammered out against the backdrop of leadership change at Ofwat, with Sky News revealing during the summer that David Black, its chief executive, was to step down following the publication of a government-commissioned review which recommended the regulator’s abolition.

He has been replaced by Chris Walters, another Ofwat executive, on an interim basis.

A spokesperson for the creditor group declined to comment on Tuesday.

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Jaguar Land Rover cyberattack pushes overall UK car production down more than a quarter

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 Jaguar Land Rover cyberattack pushes overall UK car production down more than a quarter

UK car production fell by more than a quarter (27.1%) last month as a cyberattack at Jaguar Land Rover halted manufacturing at the plant, industry figures show.

The total number of vehicles coming off assembly lines – including cars and vans – fell an even sharper 35.9%, according to September data from the Society of Motor Manufacturers and Traders (SMMT).

“Largely responsible” for the drop was the five-week pause in production at Jaguar Land Rover (JLR) due to a malicious cyber attack, as other car makers reported growth.

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JLR’s assembly lines in the West Midlands and Halewood on Merseyside were paused from late August to early October as a result.

During this time, not a single vehicle was made. Production has since restarted, but the attack is believed to have been the “most financially damaging” in UK history at an estimated cost of £1.9bn, according to the security body the Cyber Monitoring Centre.

It was the lowest number of cars made in any September in the UK since 1952, including during the COVID-19 lockdown.

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Are we in a cyber attack ‘epidemic’?

Despite the restart, the sector remains “under immense pressure”, the SMMT’s chief executive Mike Hawes said.

The phased restart of operations led to a small boost in manufacturing output this month, according to a closely watched survey.

Of the cars that were made, nearly half (47.8%) were battery electric, plug-in hybrid or hybrid.

The vast majority, 76% of the total vehicles output, were made for export.

The top destinations are the European Union, US, Turkey, Japan and South Korea.

JLR was just the latest business to be the subject of a cyberattack.

Harrods, the Co-Op, and Marks and Spencer, are among the companies that have struggled in the past year with such attacks.

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English Championship side Sheffield Wednesday file for administration

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English Championship side Sheffield Wednesday file for administration

Championship club Sheffield Wednesday have filed for administration, according to a court filing, which will result in the already struggling side being hit with a 12-point deduction.

The South Yorkshire club currently sit bottom of the Championship, the second tier of English football, with just six points from 11 games.

Known as The Owls, Wednesday are one of the oldest surviving clubs in world football, with more than 150 years of history.

Court records confirm the club have filed for administration. A notice was filed at a specialist court at 10.01am.

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Sky’s Rob Harris reports on the news that Sheffield Wednesday have filed for administration

What has happened?

The Owls, who host Oxford United on Saturday, have been in turmoil for a long time.

On 3 June, owner Dejphon Chansiri, a Thai canned fish magnate who took over the club in 2015, was charged with breaching EFL regulations regarding payment obligations.

Sheffield Wednesday fans protest the ownership at a game away to Leeds United in January. Pic: Reuters
Image:
Sheffield Wednesday fans protest the ownership at a game away to Leeds United in January. Pic: Reuters

Weeks later, Mr Chansiri said he was willing to sell the club in a statement on their official website.

Sheffield Wednesday's troubles have sparked furious protests from fans. Pic: PA
Image:
Sheffield Wednesday’s troubles have sparked furious protests from fans. Pic: PA

Their crisis deepened just days later when another embargo was imposed on the club relating to payments owed to HMRC, before players and staff were not paid on time on 30 June.

In the months that followed, forwards Josh Windass and Michael Smith left the club by mutual consent. Manager Danny Rohl, now at Rangers, also left by mutual consent.

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Frustrated Sheffield Wednesday supporters have targeted their embattled club’s owner in a highly-visible protest during their opening match of the season.

The Owls were forced to close the 9,255-capacity North Stand at Hillsborough after a Prohibition Notice was issued by Sheffield City Council.

‘Current uncertainty’

On 6 August, the EFL released a statement, saying: “We are clear that the current owner needs either to fund the club to meet its obligations or make good on his commitment to sell to a well-funded party, for fair market value – ending the current uncertainty and impasse.”

On 13 August, the Prohibition Notice was lifted, but a month later, news emerged of a winding-up petition over £1m owed to HMRC.

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Last season, Wednesday finished 12th. They had already been placed under registration embargoes in the last two seasons after being hit by a six-point deduction during the 2020/21 campaign, for breaching profit and sustainability rules.

With a 12-point deduction, the Owls would be 15 points away from safety in the Championship.

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Retail sales the highest in three years in a surprise to economists

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Retail sales the highest in three years in a surprise to economists

Retail sales are at the highest level in more than three years, in the latest measure of the UK economy to confound economists.

The amounts bought in shops rose 0.5% in September, far above the 0.2% contraction anticipated by economists polled by Reuters.

It was the fourth monthly rise in a row and brought volumes to their highest level since July 2022.

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Doing well were computer and telecommunications retailers as the iPhone 17 launched in the month, while online jewellers reported strong demand for gold despite the price hovering around record highs.

Gold has been in demand, and in recent days reached a record high, as some investors moved money out of the US dollar and government bonds amid the ongoing government shutdown.

It came despite a rainy month – which typically keeps shoppers at home – and a five-day tube strike in London.

The impact of the rain could be seen, however, in the boost to online spending, which rose to one of the highest levels since the end of the pandemic.

A fall was recorded in food shop sales from August to September, signalling a response to high food price inflation.

A good week for the economy?

Retail sales figures are significant as they measure household consumption, the largest expenditure in the UK economy.

Growing retail sales can mean economic growth, which the government has repeatedly said is its top priority.

Earlier this week, another key economic measure came in better than expected.

Inflation remained at 3.8% rather than rising to the widely expected 4% – double the target rate set by the interest rate-setters at the Bank of England.

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Consumers were feeling better about their finances, a closely watched measure of consumer confidence showed on Friday.

Buying sentiment is up from last month, according to market research company GFK, as intentions to buy big-ticket items like electrical goods and furniture rose.

Combined, it suggests people are not feeling too gloomy in the run-up to the November budget.

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