Ignore whining Thames Water investors, prime minister – it was caveat very much emptor

The Labour government's first international investment summit arrives next week, a chance for ministers to advertise the splendid opportunities available to global funds under the UK's new pro-growth, mission-led, market-friendly administration.

- Nils Pratley

It is also a moment for those global investors to bellyache about Ofwat, the water regulator.

In fact, they've started already. Here comes the Abu Dhabi sovereign wealth fund with a write-off of its entire 9.9% stake in Thames Water, the over-indebted big beast of the sector. Aside from Thames's “operational performance” (well, quite), Abu Dhabi blamed “the challenging regulatory environment”, a nod to the familiar grumble that Ofwat has somehow made English water companies “uninvestable” by refusing to allow customers' bills to be hiked to the moon, just halfway to it.

And here is Jon Phillips, chief executive of the Global Infrastructure Investor Association, telling the FT about the supposedly dreadful spillover effects: “Some 30 international investors in UK water are also potential investors in energy, transport and digital infrastructure. But perceptions continue to be coloured by their experience in water, where the regulatory environment remains a red flag.”

What are poor Keir Starmer and Rachel Reeves supposed to say in response?