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As the looming deadline for £190 million in debt owed by Kemble Water, the parent company of Thames Water, approaches, a consortium of lenders has taken proactive steps by engaging the services of EY, a leading accountancy firm, to guide them through the negotiation process.
The group of financiers, owed the substantial sum by Kemble Water, the entity overseeing Thames’s regulated operations, has sought the expertise of the prominent accountancy firm amidst escalating concerns regarding the company’s financial stability.
With a £190 million facility set to either be repaid or extended by the end of April, the utility’s executives conveyed to MPs in December that the company was presently unable to fulfill this financial obligation.
The current status of negotiations with the pertinent lenders remains unclear, with the progress towards a favorable resolution yet to be determined as of Friday.
The specter of Thames Water’s solvency has lingered since last June, when reports surfaced indicating that Whitehall had commenced devising contingency plans in the event of the company’s collapse.
Serving 15 million customers across London and the southeast of England, Thames Water has faced mounting scrutiny in recent years due to issues ranging from leakages and sewage contamination to executive remuneration and shareholder dividends.
In addition to grappling with significant fines imposed by regulators, the utility has petitioned Ofwat for a suite of measures aimed at bolstering its financial position, including potential increases in consumer bills of up to 40% and deferment of capital expenditure plans.
EY declined to provide commentary on the matter.
In a separate development, a proposal has been put forth by a vehicle led by prominent City financier Edi Truell to Thames Water’s pension trustees. The proposition entails the removal of £1.7 billion in pension liabilities from the company’s balance sheet.
Pension SuperFund Capital, spearheaded by Mr. Truell, has outlined a structure for the arrangement that would not entail any direct cash outlay from Thames Water, according to insiders familiar with the matter.
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Thames Water Lenders Enlist EY as Debt Deadline Nears

The Post Office will no longer be responsible for administering compensation for victims impacted by the flawed Horizon software.
Post Office Minister Kevin Hollinrake made this announcement in the Commons on Wednesday afternoon, indicating a departure from the previously held responsibility.
Acknowledging a recommendation from the Business and Trade Committee, Minister Hollinrake stated that the Department for Business and Trade, along with independent individuals, will now oversee the administration of redress for those affected. This decision comes in the wake of the Horizon system’s malfunction, which led to numerous individuals being wrongly accused of fraud, theft, and financial mismanagement.
Mr. Hollinrake elucidated, “I can announce today that it will be the Department for Business and Trade rather than the Post Office which will be responsible for delivery of this redress related to the overturning of these convictions. Final decisions on redress will be made by independent panels or independent individuals.”
While 102 falsely accused sub-postmasters have seen their convictions overturned, a significant number of the approximately 700 convicted individuals are yet to receive justice.
Furthermore, despite the acceptance of one recommendation from the Business and Trade Committee, another was dismissed. The rejected recommendation called for legally binding timeframes to be established for the delivery of redress, a move Minister Hollinrake deemed counterproductive.
Explaining the rationale behind this decision, Mr. Hollinrake expressed concerns that imposing financial penalties within specified timeframes could impede the compensation process rather than expedite it. He emphasized the potential repercussions, suggesting that such penalties might discourage forensic accountants and others assisting postmasters from participating in the claims process, thus slowing down the provision of redress.
“We feel their proposed regime would have the opposite impact, it would mean potentially imposing penalties on forensic accountants or others who are helping postmasters to prepare their claims,” he remarked.
The minister underscored the need to avoid rushing postmasters into critical decisions about their claims and offered a perspective on ensuring a fair and thorough process.
The revelation comes amidst a backdrop of upheaval for sub-postmasters whose lives were marred by unfounded accusations and subsequent hardships arising from the Horizon debacle. While this decision marks a significant step forward in rectifying past injustices, it is clear that challenges persist in the pursuit of comprehensive redress for all affected parties.
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Post Office to be Excluded from Horizon Compensation Process, Minister Confirms

Sir Richard Branson’s Virgin Group is set to trim its workforce at its London headquarters as part of a consolidation effort involving two of his enterprises.
It’s been revealed that Virgin Group will be reducing its head office staff by 8%, affecting approximately 32 out of its 425-strong workforce. This decision comes following the amalgamation of Virgin Management, the brand and licensing division, with the loyalty program Virgin Red.
These job cuts coincide with Sir Richard Branson’s anticipation of receiving a windfall exceeding £400 million from the potential sale of his minority stake in Virgin Money. Last week, Nationwide surprised the market by striking a deal to acquire the high street bank for nearly £3 billion, with Virgin Group also poised to collect a £250 million exit fee as its brand phases out within the merged entity.
Virgin-branded enterprises collectively employ roughly 60,000 individuals across 35 countries globally.
According to insiders, the redundancies aim to eliminate duplication and streamline operations across the integrated entities.
Certain Virgin companies, such as Virgin Hotels Collection and Virgin Management, are wholly owned by Sir Richard and Virgin Group.
A spokesperson for Virgin Group commented on the proposed changes, stating: “We have recently announced some proposed changes to complete the integration of two businesses in the Virgin Group – Virgin Management, our brand and licensing company, and Virgin Red, our loyalty programme.
“We first initiated the integration of these companies more than three years ago, and these changes are designed to streamline our operations and set us up for long-term growth.
“The changes will reduce our workforce by around 8% – or 32 roles – and we will do as much as we can to support the employees impacted.”
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Branson Trims Workforce at Virgin Group HQ

As electric car sales plummet in the UK James Taylor, Managing Director of Vauxhall, has penned an open letter addressed to UK Prime Minister Rishi Sunak outlining crucial steps to reinvigorate the electric car market in the UK.
In his letter published in The Sun, Taylor highlights a pivotal concern: the delay in transitioning to electric vehicles following the postponement of the ban on new petrol and diesel cars until 2035. Despite governmental mandates mandating increasing quotas for electric car sales, from one in five this year to four in five by 2030, Taylor underscores a stagnation in consumer adoption.
Acknowledging the Government’s commitment to zero emissions motoring, Taylor stresses the necessity for collaborative action. He points out the lack of incentives suffocating private sales of electric vehicles resulting in the UK now lagging behind its European counterparts in sustainable motoring practices.
Taylor presents three key proposals to ignite the transition to EVs: reducing VAT on electric cars to ten percent, making charging costs more equitable, and streamlining bureaucratic processes hindering the installation of charging infrastructure.
Dear Rishi,
I’m writing on behalf of millions of British motorists. The family car buyer. The small car driver.
I’ve got to be honest, last week’s Budget was disappointing for them, and for the uptake of electric vehicles.
You have rightly set out the path to zero emissions motoring, something Vauxhall is fully behind.
The trouble is we can’t do it alone. The new car market reflects that.
A lack of incentives is suffocating private sales of electric vehicles.
Continued inaction risks a “them and us”. Between those that can afford or, like company car drivers, are incentivised to do so, and those that can’t.
It risks the country falling behind the rest of Europe in the switch to cleaner motoring.
The simple truth is, for the moment, electric vehicles are more expensive to manufacture, and therefore buy.
Combined with the cost-of-living crisis and inflation pressures, many people who drive popular small and family cars can’t afford to make the switch.
That is an issue if 52 per cent of all cars sold in the UK are to be electric in just over four years, 80 per cent by 2030 and 100 per cent by 2035.
The market is being driven by company car and business owners who benefit from very strong tax incentives to buy electric.
We are fully behind supporting people to do the right thing.
But, the question to ask is whether it is right to still support someone with tens of thousands of savings in tax when buying a £100,000 luxury electric car, when the average private buyer gets nothing?
Imagine if those incentives were distributed differently and used to support sales of small and family electric cars to private buyers?
The more affordable the electric cars we sell today means even more Brits will be able to buy used versions tomorrow. That’s how it works.
As I said, we are doing our bit. And some.
We are working hard to make electric cars as affordable as possible.
The new Corsa Electric YES Edition is one of the UK’s most affordable five-door electric cars.
There are generous finance offers across the range. Plus, we are offering a year’s free charging at Tesco sites nationwide.
We are giving people choice. By the end of the year, we will have an electric version of every car and van in our range.
By 2030, we will have halved our carbon footprint and be net zero by 2038.
We are also proudly helping Britain’s businesses to go green by supplying electric vans from our factories in Ellesmere Port and Luton.
We are supporting the 40 per cent of Brits who don’t have a driveway to charge at home with our electricstreets.co.uk campaign.
Together with our partners, we are helping councils install on-street chargers where people want them no matter what car you drive.
So, what is going to make a difference and put the spark back into the transition to EVs?
Make the switch as financially obvious for a private driver as it is for a company car driver (like in many other European countries) and reduce VAT on electric cars to ten per cent.
This would immediately cut around £3,000 off a small EV, like the Corsa, and at least £4,000 off a family electric car, like the Astra.
Make charging costs fairer — if you have a drive and charge at home, you pay five per cent VAT on electricity.
If you can only charge in public, then it is 20 per cent. That’s wrong.
We need to remove the red tape that is slowing down the councils and companies trying to install even more chargers, even faster.
Things like quicker planning permission and access to the grid. The sooner people see more chargers, the sooner they will be more confident to switch.
Everything is there for us to do it. You can see we are doing our part.
With a bit of a rethink on some of your policies, I know we can get Britain back in the fast lane on the road to cleaner motoring.
Yours sincerely,
James Taylor
Managing Director, Vauxhall
Read more:
Dear Rishi, EVs are still too expensive & Brits will only start buying them if you do 3 things says Vauxhall boss

Inflation in the UK is projected to have decelerated to a two-year low in February, with economists cautioning that the Bank of England’s 2 per cent target may not be met in the upcoming months.
Official data scheduled for release next Wednesday is anticipated to reveal that consumer prices inflation stood at 3.5 per cent last month, marking the slowest pace since September 2021 and a significant decrease from the 4 per cent recorded earlier this year.
In Britain, inflation has been steadily declining since reaching its peak of 11.1 per cent in October 2022. High interest rates and reduced global energy costs have tempered price growth, which has remained above the Bank’s 2 per cent target rate since July 2021.
Economists predict that February’s inflation rate will be influenced by low energy prices, a deceleration in food prices inflation, and a drop in used car values. They have also cautioned that robust disinflationary pressures and tight monetary policy could push inflation below the 2 per cent target this year, signaling the need for interest rate cuts.
Benjamin Nabarro, an economist at Citi, remarked, “Inflation is now on a path at least back to target, if not below.” He emphasized that data continues to move in a disinflationary direction. The Office for Budget Responsibility recently revised its forecasts, indicating that inflation would dip below the 2 per cent target in spring and remain at that level for the rest of the year. Conversely, the Bank’s forecasts suggest that inflation will rise in the second half of 2024 and only meet the 2 per cent target in 2025.
The Bank of England’s policymakers are set to announce their latest decision a day following the release of inflation figures. They are expected to maintain borrowing costs at 5.25 per cent and closely monitor inflation in the services sector, which has become a crucial factor in determining the future trajectory of interest rates. Nabarro estimates that services inflation, which was at 6.5 per cent in January, may decrease to 6 per cent in February.
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Inflation forecast hit two-year low

Nikhil Rathi, the chief executive of the Financial Conduct Authority (FCA), has sparked a backlash from consumers after indicating that the regulator would not intervene if banks opted to charge for current accounts.
Rathi’s comments at a bankers’ conference, where he stated that the FCA would not obstruct changes to business models in response to competition and market shifts, drew sharp criticism from consumer groups. Simon Youel from Positive Money expressed deep concern, particularly given banks’ already substantial profits. He emphasized that any move to end free current accounts would further disadvantage the public, especially amid branch closures.
Former pensions minister Baroness Altmann also voiced apprehension over the FCA’s stance, questioning its commitment to consumer support while seemingly endorsing banks’ pursuit of additional revenue from already poorly served customers.
Although banks traditionally offer current accounts for free while charging for overdrafts, there have been past attempts to introduce fees for current accounts. However, such efforts faced strong resistance from consumers. While regulators have long contended that “free banking” is a misnomer, citing low or nonexistent interest rates on balances, some banks have explored charging for current accounts, like Santander’s 123 account, which imposed a monthly fee but offered perks such as higher interest rates and cashback.
Governor of the Bank of England, Andrew Bailey, has previously criticized the concept of free banking, warning that it incentivizes banks to seek profits through the mis-selling of products like payment protection insurance. Nevertheless, attempts by banks to introduce fees for previously free services, such as cash machine withdrawals, have often been met with public outrage.
Rathi clarified that the “free-if-in-credit” banking model in the UK is a market decision rather than a regulatory requirement, and he signalled that the FCA would not impede moves to end free banking, drawing attention to other countries where banks routinely charge fees for similar services.
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FCA chief faces consumer backlash after signalling possible ‘end of free banking’

In a landmark ruling, the judge presiding over the legal dispute regarding the inventorship of Bitcoin has declared that Australian computer scientist Craig Wright is not the creator of the cryptocurrency.
The verdict, delivered by Mr Justice Mellor after a five-week trial at the High Court, came promptly following the conclusion of proceedings. Despite expectations of deliberation, the judge cited overwhelming evidence leading to a swift decision.
Bitcoin, the world’s most renowned cryptocurrency, has been thrust into the limelight recently with its unprecedented surge to a new record valuation. Yet, the identity of its creator, known only by the pseudonym Satoshi Nakamoto, has remained a mystery. Since 2016, Dr. Wright has asserted himself as Satoshi Nakamoto, but his claims have faced scrutiny from cryptocurrency experts, and his supporting evidence has been subject to skepticism.
Dr. Wright has been embroiled in legal battles for years, defending his narrative against individuals who contested his assertions. This particular case, heard at the Intellectual Property Court of London’s High Court, was initiated by a consortium of Bitcoin companies, including members of the Crypto Open Patent Alliance (COPA), which includes Jack Dorsey’s payments firm, Block. COPA accused Dr. Wright of hindering cryptocurrency development through aggressive litigation tactics.
During the trial, COPA’s legal team accused Dr. Wright of engaging in a “massive campaign of dishonesty and forgery,” alleging that he had even forged documents while the proceedings were ongoing. Jonathan Hough, COPA’s lawyer, emphasized the seriousness of Dr. Wright’s actions, characterizing some aspects as farcical yet stressing their significant ramifications.
Dr. Wright’s defense contended that if he were not the true inventor, Satoshi Nakamoto would have surfaced to refute his claims. However, Mr. Justice Mellor concurred with the plaintiffs, affirming that Dr. Wright was not the individual behind the pseudonym Satoshi Nakamoto and did not create the Bitcoin system. A comprehensive written judgement is expected to follow the judge’s ruling.
The outcome of this trial marks a significant milestone in the ongoing quest to unravel the mysteries surrounding Bitcoin’s origins and reinforces the enduring enigma surrounding its creator.

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Judge Dismisses Claim of Australian Computer Scientist as Bitcoin Inventor

The latest figures from the Insolvency Service reveal a concerning trend in business insolvencies, with a notable increase of nearly a fifth compared to the same period last year.
In February, a total of 2,102 businesses faced insolvency, marking a significant rise from the 1,801 recorded in February of the previous year.
While the data did not provide specific sectoral breakdowns for February, recent trends have shown that insolvencies are predominantly concentrated in sectors such as construction, retail, and manufacturing.
This surge in insolvencies coincides with the Bank of England’s efforts to combat inflation by gradually raising interest rates. Since November 2021, the base rate has been increased from a historic low of 0.1 percent to 5.25 percent by August 2023, the highest level in 16 years.
Despite expectations of stability in interest rates at the upcoming meeting of the Bank’s monetary policy committee, financial markets anticipate a potential rate cut in June.
It’s worth noting that government support schemes introduced during the Covid-19 pandemic, along with legal protections for financially affected companies, helped keep insolvency figures relatively low. However, these temporary measures were lifted in April 2022, exposing businesses to increased financial pressures.
Sarah O’Toole, restructuring partner at PwC UK, highlighted the ongoing challenges faced by businesses, including supply chain disruptions, cautious lending practices, and the impact of higher interest rates. She noted that the rise in insolvencies in February was expected, particularly following poor trading performances during the holiday season.
The uptick in insolvencies raises concerns about potential job losses, with unemployment expected to increase as affected businesses lay off staff. Despite this worrying trend, there are indications of economic recovery, including modest GDP growth and a significant rebound in retail sales in January, signaling a potential end to the recent recession.
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Companies going bust rises by a fifth compared to same period last year

The latest data from the Department for Work and Pensions (DWP) has revealed thousands of people are deemed unable to work due to mental health issues every month.
Official figures indicate that at least 20,000 incapacity benefit claims are attributed to mental health problems, constituting more than two-thirds of the total claims.
Previously, mental health and learning disabilities were identified as significant contributors to disability benefits. However, until now, there has been a lack of specific data on incapacity benefits provided through universal credit for individuals struggling to work.
The DWP data further reveals that 2 million people are currently receiving universal credit health benefits, representing a significant increase of 400,000 individuals in a year. Of these recipients, 69% are deemed unfit for any form of work.
Among the assessments conducted in the past two years, mental and behavioral disorders were cited in 69% of cases, while other health issues such as back and joint problems, nervous diseases, metabolic disorders, circulatory problems, and digestive illnesses were also prevalent.
On average, claimants have 2.7 health conditions, highlighting the complexity of illnesses contributing to the surge in benefits claims. Experts emphasize that there is no quick solution to address this trend, underscoring the need for tailored support rather than punitive measures against jobseekers.
Christopher Rocks from the Health Foundation emphasizes the increasing impact of mental health on individuals’ ability to work and calls for tailored support to address this issue effectively.
Nil Güzelgün from the mental health charity Mind highlights the urgent need for mental health support, particularly in light of the 1.9 million people on waiting lists for NHS mental health treatment. She stresses the importance of offering tailored support from experts to facilitate individuals’ return to work.
Responding to the data, a spokesperson from the DWP emphasized their welfare reforms aimed at providing personalized support and enabling individuals to try work without fear of losing benefits. However, concerns remain regarding the adequacy of mental health support and the effectiveness of existing measures in addressing the challenges faced by those unable to work due to health issues.
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20,000 people off work in the UK every month with mental ill health