United Kingdom

Gloucestershire Constabulary finance chiefs have dismissed fears they could go bust '"like Birmingham City Council" amid concerns over funding, BBC.com reported. The force said that it would not face bankruptcy as concerns grew over plans for a stark rise in debt, a recruitment freeze and a "blip" in officer leaving. According to a report by Peter Robinson, the Office for Police and Crime Commissioner's (OPCC) interim chief finance officer, the force needed to find cumulative budget savings of £7m next year, with an increase year on year.

Thames Water Utilities Ltd. unveiled a plan Friday seeking to raise up to £3 billion ($3.9 billion) from some of its creditors as it struggles to stave off insolvency while negotiating a lasting solution, Bloomberg News reported. The UK’s largest water and sewage provider said it wants to borrow more money and extend existing debt due to mature next year. It also wants to access cash reserves to avoid running out of operating capital by early next year. Without new funds and a restructuring of its debt load of around £16 billion, the utility would likely be temporarily nationalized.

A group of creditors that holds Thames Water’s riskiest debt is drawing up plans to provide the beleaguered UK utility with a loan of at least £1.5 billion ($1.9 billion) to help it stave off insolvency, Bloomberg News reported. The holders of Class B securities have offered financing that would pay about 8% interest. It would rank senior to all of the company’s existing debt, one of the people said.

Bank of England Governor Andrew Bailey said disinflation in the UK is happening faster than officials had anticipated, the latest hint that the central bank will continue cutting interest rates next month, Bloomberg News reported. Bailey said during an event on Wednesday in Washington that inflation was lower than he had expected a year ago, highlighting a “good story” on second-round effects that threatened to keep price pressures elevated.

The Bank of England is hunting for better ways to keep a close eye on non-bank financial institutions as it looks to track escalating risks posed by the sector, Bloomberg News reported. The central bank has spent months probing how a bevy of investment banks, insurers, central counterparties, hedge funds and other asset managers can handle different forms of stress as part of its so-called system wide exploratory scenario. Still, Governor Andrew Bailey said regulators have already realized there’s a need for further tools to monitor these players.

A new luxury hotel near London’s Bond Street station is going up for sale after attempts to refinance the project so far have been unsuccessful, Bloomberg News reported. Jones Lang LaSalle Inc. has been appointed to market the five-star BoTree hotel on Marylebone Lane. The 199-room property, built on the site of a former car park, was developed by Shiva Hotels Group and cost £375 million ($487 million) to build. Place III has been attempting to refinance the hotel since it opened in September 2023.

The perilous state of U.K. council finances means one in four local authorities could be forced to request emergency support from the government to avoid effective bankruptcy over the next two years, according to research, the Independent reported. A survey of council chief executives suggests projected funding shortfalls, which are expected to total more than £2 billion next year, will threaten the viability of many councils in England without measures in the Budget to ensure stability and protect vital services.

Thames Water Utilities Ltd. has started a process to raise at least £3.3 billion ($4.3 billion) in equity that it needs to stay afloat, Bloomberg News reported. The UK’s largest water and sewage operator began the procedure in the past week, meaning potential investors now have access to a data room that provides sensitive information about the company. Thames and its adviser, Rothschild & Co., have approached numerous potential investors, including Brookfield Asset Management and Carlyle Group Inc.

The UK tax office is taking a tougher approach to clawing back debts, insolvency specialists said, a bid to squeeze £5 billion ($6.5 billion) in extra revenue that is adding to pressure on firms going out of business, Bloomberg New reported.