Burnham has forced greater clarity at Thames Water. Now he must choose

Bondholders are suddenly showing flexibility after 18 wasted months at ailing utility company

• Thames Water investors offer ‘golden share’ in bid to head off nationalisation

What a difference a credible political threat of special administration at Thames Water can make. Suddenly, the bondholders are volunteering all manner of new ideas in their attempt to take over the ailing utility. Would you like the state to have a “golden share”, Mr Burnham? Here is a menu of “supervisory structures” that may meet your definition of “greater public control”. And please note that other “material improvements” to our last offer are on the way. Tell us what you want.

The bondholders’ sudden flexibility demonstrates the weakness in the government’s approach under Keir Starmer. The Treasury never hid its preference for a “market-based solution”, in the jargon. The result was a series of weak proposals from the bondholders – starting a year ago with an inadequate 20% haircut for them – that didn’t match the depth of the financial crisis at failing Thames. Now, at last, we may be cutting to the chase. We should have arrived at this point at least 18 months ago.