Thames Water is on the brink of nationalisation after the government blocked a last-minute rescue deal. The move effectively puts the UK's largest water company, which serves 15 million households, under state control. The decision follows months of financial turmoil as the company struggled under a £15bn debt pile and faced mounting criticism over sewage discharges and rising bills.
Ministers argued the rescue plan, which would have given creditors a 99% stake, failed to protect consumers and taxpayers. The government now plans to appoint a special administrator to run the company, while investors face heavy losses. Unions welcomed the move, calling it a 'victory for the public over profiteering'.
But critics warned nationalisation could cost billions and harm investor confidence in other utilities. Labour accused the government of 'plunging into chaos' and demanded a clear plan for the future of the water industry. Consumer groups urged ministers to guarantee no further bill increases and investment in infrastructure to fix leaks and sewage overflows.
