Business News: Water sector under pressure as Thames deal collapses while M&S boss sees pay rise to £7.1m

Today's bulletin focuses partly on the water sector - because there are several big stories. Firstly - England and Wales' water industry needs a “fundamental reset”, according to a new report. The Independent Water Commission says failures across the industry are “deep-rooted and systemic”. It’s calling for a tougher, more hands-on approach from regulator Ofwat.

Thames Water deal collapses and ex-UK trade minister Greg Hands joins Royal Mail: More Business in Brief

• Meanwhile, Thames Water says talks with investor KKR have collapsed, dealing a blow to its rescue plans. KKR had been the preferred partner in efforts to recapitalise the troubled utility. But it’s now pulled out, meaning Thames Water will shift focus to a plan backed by senior creditors. Chairman Sir Adrian Montague says the company remains committed to finding a sustainable solution.

• The owner of South West Water has also said today rising bills will help fund £3.2 billion in upgrades. Pennon Group posted a £72.7 million loss this year - much deeper than last year’s £9.1 million. It blames record investment and efforts to cut customer water use. Average bills jumped 28 per cent in April, helping to cover a third of its long-term plans.

• In other news, Irish hotel group Dalata has received a potential €1.3 billion cash offer. The early-stage proposal comes from hotel property company Pandox and real estate specialist Eiendomsspar. They’re offering €6.05 a share - a 27 per cent premium on Dalata’s March price. Talks are under way, but there’s no guarantee a formal bid will follow.

• Former UK trade minister Greg Hands has joined Royal Mail’s new owner as a strategic adviser. The ex-Conservative MP will work full-time for Czech billionaire Daniel Kretinsky’s EP Group. He’ll focus on the UK and Germany as the company takes full control of Royal Mail.

• Finally - Marks & Spencer boss Stuart Machin has seen his pay rise to £7.1 million. The jump comes as he steers the retailer through a major cyber attack. His package includes £4.6 million in long-term bonuses he can’t touch for two years. A strong year also earned him a £1.6 million performance bonus.