Ministers plan legally binding debt targets for England’s water companies

Exclusive: Move comes as allies of Andy Burnham work on proposals to take water companies into public control Ministers are drawing up plans to set legally binding debt targets for England’s water companies as they look for ways to avoid another corporate failure such as Thames Water. Sources say Emma Reynolds, the environment secretary, is working on proposals that would force companies to keep their debt below certain levels for the first time or face legal punishment. The move comes as allies of Andy Burnham work on proposals to take water companies into public control, which the incoming prime minister has said will be one of his main priorities once he enters Downing Street later this month. One source close to Reynolds said: “Under the Tories, water companies were allowed to rack up debt and pay out dividends while taking customers for a ride. The secretary of state is putting an end to that, asserting control over poor-performing companies, protecting customers and tackling pollution.” The fate of England’s water industry is in the balance as government officials and industry executives prepare for Burnham to enter office. The Makerfield MP has promised to take the â