Thames Water creditors pick former Labour minister Lord Hutton to chair the firm in a bid to stave off nationalisation

The London & Valley Water consortium will install Lord John Hutton, who sat in Tony Blair's and Gordon Brown's cabinets, only if its £10bn rescue is approved. Thames Water is buried under a near-£20bn debt pile and serves 16 million customers. Last week it sought £2.4bn more in emergency funding to avoid running dry. Prime Minister Andy Burnham has reportedly ordered officials to find more radical options.

Turnaround specialist Mike McTighe, once lined up as chair, becomes vice-chair designate instead.

Hutton promises customers 'the highest possible standards of customer service'.

Emma Reynolds, then environment secretary, said the plans 'don't do enough to protect consumers'.