Thames Water's creditors have lined up four new board members in a bid to secure a market-led rescue and avoid nationalisation under Prime Minister Keir Starmer. The consortium, operating as London & Valley Water, has proposed appointing Liz Barber, former chief executive of Yorkshire Water; Philip Rutnam, former permanent secretary at the Department for Transport; Clive Selley, former chief executive of Openreach; and Mike McTighe, chair of Openreach who is already advising Thames Water. The utility, burdened with a £20bn debt pile and serving 16mn customers across London and surrounding areas, is expected to run out of cash as early as October.

Creditors aim to reach a deal with the government and regulator Ofwat this autumn, with plans to list the company on the London stock market by 2030. They have offered short-term bridge financing, but need assurance of a "market solution" before committing more funds. The previous Labour government under Sir Keir Starmer favoured a private-sector solution, but the current administration has signalled greater public control, including a potential golden share and local board representation.

If nationalised under special administration, debt payments would be frozen and creditors would face court-determined compensation reflecting the company's financial and environmental failings.