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 which would force companies to keep their debt below certain levels for the first time or face legal punishment.
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