A corporate intelligence company part-owned and formerly run by the prime minister's business adviser has received more than £1m from Thames Water as the utility tries to avoid renationalisation, the Guardian can reveal.
Hakluyt, which was run by Varun Chandra until his appointment as Keir Starmer's business adviser last July, has worked with Thames since 2023, providing political and strategic advice. The commercial relationship has continued since Chandra joined No 10, presenting a potential conflict of interest as he still owns a multimillion-pound stake in Hakluyt and receives dividends. A No 10 source said Chandra had no personal involvement with Thames and made all relevant declarations.
Several politically connected Hakluyt employees have also been advising Thames, including a former speechwriter to Chancellor Rachel Reeves and Rishi Sunak's former deputy chief of staff, Will Tanner. Sir Oliver Robbins, a former Brexit negotiator, worked on Thames in 2023 while at Hakluyt.
Thames Water spent at least £136m on efforts to secure emergency funding in the financial year to March 2025, including with law firms Linklaters and Akin Gump. The Treasury is keen to avoid Thames collapsing into state hands, with Reeves writing to creditors in July to express her preference for a 'market-based solution'.
Chandra intervened in spring talks to persuade US private equity group KKR to buy Thames, speaking to co-founder Henry Kravis, but KKR walked away in June. Creditors are now proposing a takeover, asking for leniency on fines and fewer improvements to the network while charging customers the same.
