A corporate intelligence firm, Hakluyt, which is part-owned by Varun Chandra, who also serves as a business adviser to Prime Minister Keir Starmer, has received over £1 million from Thames Water. This engagement is part of an effort to prevent the UK’s largest water company from being renationalized. Hakluyt has been providing strategic and political advice to Thames Water since 2023.
Chandra joined the government’s advisory team in July 2024, yet his involvement with Thames Water continued. Concerns arise regarding potential conflicts of interest since he retains a multimillion-pound stake in Hakluyt and is entitled to dividends. A No. 10 spokesperson clarified that Chandra had maintained proper declarations and had no direct involvement with Thames during his time at Hakluyt.
In recent months, Chandra played a role in negotiations with a U.S. private equity firm, KKR, in an effort to secure a buyout, but KKR ultimately withdrew, citing high risks. Several other Hakluyt employees with connections to political figures have also been advising Thames, further emphasizing the intertwined relationships between business and politics.
Thames Water is facing significant financial challenges, with debts exceeding £20 billion and ongoing efforts to secure private sector investment as part of what they term “Project Samuel.” The Treasury aims for a market-based solution to avoid the company entering a special administration regime, which could lead to government oversight.
Amidst these developments, it has been reported that more than 100 creditors are seeking to take over Thames Water, offering leniency from penalties in exchange for assuming control. The situation raises questions about the management of conflicts of interest and the influence of private firms in matters of public utility. Both Thames Water and Hakluyt have stated that they maintain a focus on providing solutions that serve the interests of customers and taxpayers.
Source: https://www.theguardian.com/business/2025/sep/13/thames-water-paid-1m-plus-to-corporate-spooks-firm-part-owned-by-starmer-adviser