Thames Water creditors pick Labour peer Lord Hutton as chair if their rescue deal staves off Burnham's nationalisation

London & Valley Water, the consortium of investors and creditors behind a plan to keep Thames Water private, has named Lord John Hutton as chair designate of a proposed new board. Hutton held cabinet posts under two Labour prime ministers, serving in the Blair government as work and pensions secretary and in the Brown government as business secretary. The utility carries a debt burden of close to £20bn. Last July it warned that its cash would be exhausted before the year was out.

Hutton promised 'the highest possible standards of customer service' for London and the Thames Valley.

Andy Burnham reportedly wants officials to explore 'radical' options, even at extra cost to taxpayers.

Burnham backed a full state takeover before becoming PM but has struggled to fund it.