The profits would be enough to pay for 9,178 doctors or 19,428 nurses during the period. Photograph: Peter Byrne/PA
[Guardian] Exclusive: MPs say profit-making levels in England are ‘scandalous’ and call for cap on amount private companies can make from NHS
Private firms providing services to the NHS including healthcare and consultancy have made £1.6bn in profits over the last two years, research reveals.
The findings – on the basis of contracts worth £12bn – have prompted claims of “scandalous” profiteering, concern that the health service is being “taken for a ride” and calls for ministers to impose a cap on maximum profit levels.
The £1.6bn in profits made in 2023-24 and 2024-25 would have been enough to pay for 9,178 doctors or 19,428 nurses during that time, according to the Centre for Health and the Public Interest.
Its findings are based on analysis of NHS contracts in England, with 760 private firms providing services including diagnostic tests such as CT scans to patients, and treatments including hip and knee replacements, and for skin problems and mental health conditions.
The thinktank found:
£2bn of the £12bn of contracts went to firms with owners based outside the UK.
£533m of that £2bn went to companies owned by people living in tax havens such as Jersey and the Cayman Islands.
Firms, especially those owned by private equity outfits, used £353m of their £12bn NHS income to pay interest on debts.
In this drone photo, buildings destroyed during two years of Israeli army bombardments are seen in Gaza City, October 15, 2025
CAMPAIGNERS voiced outrage today after the British government hosted a conference to “drive forward private finance efforts for Gaza’s reconstruction.”
The three-day summit began on Monday at London’s Wilton Park and brought together international investors.
Speaking at the opening, Middle East minister Hamish Falconer said that Gaza has “real economic potential” which must be “unlocked.”
He underlined the need to think “creatively to bring in private capital” and touted Britain as being “well placed to help.”
The minister then posted a photo on X of suits sat around the table declaring it time to “seize this moment” and that the conference would “drive forward private finance efforts for Gaza’s reconstruction.”
Campaigners slammed the meeting as “immoral” given Britain’s complicity in enabling Israel’s war crimes.
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A spokesperson from left group Momentum slammed the conference as an example of “blatant profiteering.”
“It is totally immoral to use Israel’s genocide of the people of Gaza, which the government is complicit in, to make money.
“Reconstruction efforts must be determined by the people of Gaza.”
Mike Cushman, membership secretary of Jewish Voice for Liberation (JVL), said: “Gaza is a humanitarian and environmental disaster, not a profit opportunity for get-rich-quick private finance.
“PFI has been neither efficient nor effective in Britain, leaving a vast overhang of debt to be picked up by taxpayers for substandard services; only an inhumane government immersed in a colonialist mentality would try to inflict it on Gaza.
Keir Starmer objects to criticism of the IDF. He asks how could anyone object to them starving people to death, forced marches like the Nazis did, bombing Gaza’s hospitals and universities, mass-murdering journalists, healthworkers and starving people queuing for food, killing and raping prisoners and murdering children. He calls for people to stop obstructing his genocide for Israel.Genocide denying UK Foreign Secretary David Lammy says that UK is suspending 30 of 350 arms licences to Israel. He also confirms the UK government’s support for Israel’s Gaza genocide and the UK government and military’s active participation in genocide.Orcas discuss Genocide-supporting and complicit Zionists. Donald Trump, Keith Starmer, David Lammy, Rachel Reeves, Angela Rayner and Wes Streeting are acknowledged as evil genocide-complicit and supporting cnuts.
U.S. President Donald Trump next to the Thames Water and KKR logos. DeSmog collage. Credit: Gage Skidmore / Thames Water / KKR
The U.S. private equity firm KKR, which has been selected as the ‘preferred bidder’ for the takeover of Thames Water, gave a seven-figure sum to Donald Trump’s inauguration committee, DeSmog can report.
Official records show that Kohlberg Kravis Roberts Co LP (KKR) donated $1 million to the Trump Vance Inaugural Committee on 7 January. The committee is appointed by the president-elect to arrange the inauguration ceremony, when a U.S. president is formally sworn into office.
The embattled London-based utilities provider Thames Water, in debt to the tune of £20 billion, is attempting to secure new investment to save it from nationalisation. In March, KKR was granted preferred bidder status, giving it a 10-week period to raise the equity to buy the water company.
KKR is reported to have lodged an initial £4 billion bid in exchange for a majority stake in Thames Water, which serves 16 million customers.
However, campaigners have raised concerns about KKR’s suitability to own Thames Water, given its financial ties to Trump.
“KKR recently donated $1 million to the inauguration fund of President Trump, a man who has repeatedly called the climate crisis a hoax,” said Matthew Topham, lead campaigner at the pro-nationalisation campaign group We Own It. “Let’s not kid ourselves that this company will swoop in and clean up our rivers and lakes.
“The government has ducked the issue for too long – special administration to slash the rotten debt, then full public ownership, is the only way to reverse this catastrophe.”
The new Trump administration has initiated a bonfire of clean air and water regulations – rules that were set to save the lives of 200,000 people according to The Guardian. Gina McCarthy, chair of the Environmental Protection Agency (EPA) under former U.S. President Barack Obama, said the announcement of the mass rollbacks was the “most disastrous day in EPA history”. During his first term, from 2017 to 2021, Trump repealed more than 100 environmental regulations.
Since being inaugurated for a second time, Trump has pledged to once again withdraw the U.S. from the flagship 2015 Paris Agreement, which set an international target for limiting global warming, and has declared a “national energy emergency” to allow the U.S. to “drill, baby, drill” for new fossil fuels.
KKR’s prospective ownership of a vital public utility has also been questioned on the basis of the U.S. firm’s business model. Private equity firms – which buy and restructure companies – are known to cut costs, and increase prices for consumers, in order to maximise their profits.
KKR was infamously dubbed the “Barbarians at the Gate” in the late 1980s for its takeover of U.S. conglomerate RJR Nabisco.
“It beggars belief that anyone could seriously think this is a business model and owner who will truly fix the crisis at Thames Water,” said Mathew Lawrence, director of the think tank Common Wealth. “It is exactly the behaviour of loading Thames Water up with debt, extracting money, and underinvesting that has led us to this point. What is needed is long-term stewardship, patient investment, and putting the public and our water system first for once – not the interests of elite financial firms.”
These sentiments were reflected in Parliament this week, through a House of Lords address by Labour peer Prem Sikka. “Thames Water was put on the road to ruin by private equity,” he said. “Now its shareholders have designated KKR, another private equity group, as their preferred bidder. KKR’s business model is profiteering, high leverage, low investment, asset stripping and high cash extraction. That will inevitably multiply Thames’s problems.”
KKR and Thames Water were approached for comment.
Debt and Donations
Thames Water’s debt ballooned under the ownership of Australian private equity firm Macquarie, increasing from £3.4 billion in 2006 to £10.8 billion when the firm sold its stake in 2017.
During Macquarie’s ownership of Thames Water, the private equity firm extracted roughly £2.7 billion in dividends and a further £2.2 billion in loans. Despite this, Macquarie has recently said that it is “very proud” of its ownership record.
KKR’s preliminary bid proposed a mechanism that would allow the holders of Thames Water debt – including the U.S. hedge fund Elliott Management – to become Thames Water shareholders.
Elliott Management is an activist hedge fund that recently built up a large stake in BP and has urged the British fossil fuel major to ditch a number of its green commitments. BP’s profits recently dropped by 48 percent amid this pivot back to oil and gas. The hedge fund is run by Paul Singer, who also donated $1 million to Trump’s inauguration committee.
Turning around the performance of Thames Water will take considerable investment and business acumen. Thames Water reported a 40 percent increase in pollution incidents in the first half of 2024, while the firm has been allowed to raise customer bills by 35 percent on average over the upcoming years. Senior KKR Europe executive Johannes Huth said last year that water bills must rise to boost investment in ageing infrastructure.
KKR also has a 25 percent stake in Northumbrian Water, which it acquired in 2022.
KKR’s Connections
In addition to its donation to Trump’s inauguration fund, KKR has other ties to fossil fuels and those who oppose climate action.
Analysis by the investigative group Private Equity Climate Risks published in April 2024 reported that KKR has a large fossil fuel portfolio, with 188 assets in 21 countries.
KKR has also created a $50 billion fund with Energy Capital Partners to invest in artificial intelligence (AI) data centre energy infrastructure. Data centres are heavily energy intensive, and DeSmog recently revealed that AI executives have told major polluters that the nascent industry can keep fossil fuels alive.
KKR is also the co-owner of Marshall Wace, a hedge fund co-founded by UK media baron Paul Marshall, holding a 39.9 percent stake as of June 2023. The same month, Marshall Wace reported investments of at least £1.8 billion in fossil fuels companies, including in the oil and gas giants Shell, Chevron, and Equinor.
Marshall is the co-owner of GB News, a broadcaster that has frequently given a platform to climate falsehoods, and is an opponent of policies to reach net zero emissions.
Speaking at a conference in February hosted by the Alliance for Responsible Citizenship (ARC), a group funded by Marshall, he said that the UK’s net zero plans are “leading the way in wrecking our industrial base”, “impoverishing people”, “sacrificing our energy security”, and “sacrificing our ancient rural landscape.”
The UK’s net zero sector is growing at three times the rate of the rest of the economy, according to the Confederation of British Industry (CBI).
DeSmog also revealed that Warren Stephens, Trump’s ambassador to the UK, donated $4 million to the president’s inauguration fund on the day that he was nominated for the diplomatic position.
The inauguration committee raised a record $239 million, including from fossil fuel giants Chevron ($2 million), ExxonMobil ($1 million), the U.S. branches of BP and Shell ($500,000 each), and Valero ($250,000).
NHS trusts have been asked to make drastic cuts as the service faces a predicted shortfall of nearly £7 billion, health leaders warned today.
In a survey for NHS Providers, 47 per cent of trust leaders warned they are rolling back services to balance the books, while another 43 per cent are considering doing so.
Rehabilitation centres, talking therapies and diabetes services for young people are among services at risk.Eighty-six per cent of respondents said their organisation is having to cut jobs in non-clinical teams, while 37 per cent plan to cut clinical posts. A number of trusts are aiming to cut 500 jobs or more, with one planning as many as 1,000.NHS union Unison’s head of health Helga Pile said: “Ministers shouldn’t be insisting trusts balance their books while ignoring the damaging consequences for patient care and a demoralised workforce. “The NHS needs more staff — not fewer workers — if delays and waits for patients are to end.”It comes as NHS chief executive Sir Jim Mackey told a Medical Journalists Association event in London the service had “maxed out on what is affordable.” He said that the NHS was likely to have a £6.6bn deficit this year, despite a budget of around £200bn.
Though he has demanded unprecedented savings, he slammed the “normalisation” of poor care, saying that, 10 years ago, “we would have never accepted old ladies being on corridors next to an [A&E] department for hours on end.”We Own It founder and director Cat Hobbs said: “Back in 2012, the NHS was rated as the best healthcare service in the world. “That was before the legislation that deliberately opened up our whole NHS to profiteering. “Sir Jim Mackey is absolutely right to say that patients being treated in corridors and car parks is unacceptable. If he wants to stop this scandal while saving money, he must end privatisation as quickly as possible.
George Osborne and NHS nurses. This image is not one of mine, I need to search again for the source. later: I searched for the author and found it attributed to one person. Unless it’s done deliberately to look amateur (which it could be), I doubt that it’s him & not signed it anyway so probably doesn’t want attribution.
Thames Water is seeking to raise the funds it needs to avoid short-term nationalisation. Photograph: Maureen McLean/Rex/Shutterstock
‘Economically illiterate’ Defra letter sent to anti-sewage groups cites 2018 report commissioned by water companies
Labour used “economically illiterate” analysis paid for by water companies in order to argue against the nationalisation of the sector, the Guardian can reveal.
In an official letter recently sent to anti-sewage groups, civil servants cited a paper by the Social Market Foundation as a reason to avoid nationalisation as part of its review of the sector. The report from 2018 was commissioned by United Utilities, Anglian Water, Severn Trent and South West Water.
The letter, sent by the Department for Environment, Food and Rural Affairs (Defra) to the Rivers Trust, Surfers Against Sewage, River Action UK and Greenpeace states: “The Social Market Foundation calculated the likely cost of renationalisation to be £90bn, drawing on publicly available data from Ofwat, the London Stock Exchange and the annual accounts of the water companies. Renationalisation would impose a huge burden on the public purse at a time when public finances are already stretched.”
Sir Dieter Helm, a leading economist, called the analysis “economically illiterate”.
Moody’s rating agency has disputed this figure and estimated that nationalisation could actually cost £14.5bn – a fraction of the analysis amount.
Earlier this month, Steve Reed, the environment secretary, announced a review into the water companies and the regulators, but said nationalisation was firmly off the table. He said it would cost “billions of pounds” and would not solve the sewage crisis.
In this drone photo, buildings destroyed during two years of Israeli army bombardments are seen in Gaza City, October 15, 2025
