Thameswey Group

The Thameswey Group is a network of council-owned companies that grew from the creation of Thameswey Ltd in 2003. By the time the financial crisis was uncovered, the group comprised 13 companies operating across multiple sectors.

The group includes Thameswey Energy Ltd (energy generation and distribution), Thameswey Housing Ltd (affordable housing), Thameswey Developments Ltd (property development), Thameswey Central Milton Keynes Ltd (energy projects in Milton Keynes), Thameswey Solar Ltd (solar energy), and several other entities.

The council's relationship with Thameswey was unusual in that it acted as both the sole shareholder and the primary lender to the group. The council borrowed from the PWLB at relatively low interest rates and on-lent the money to Thameswey companies, in many cases at rates that did not adequately reflect the commercial risk.

Total lending to the Thameswey Group exceeded £500 million. The Grant Thornton Public Interest Report found that governance arrangements across the group were 'inadequate,' with insufficient separation between the council's role as shareholder and its role as lender.

Ray Morgan was instrumental in creating and expanding the Thameswey Group, and the Grant Thornton report found that his 'excessive influence' extended to the management of these companies.

Unwinding the council's complex relationships with Thameswey companies has been one of the major challenges for the government-appointed commissioners and is expected to take years to resolve fully.