Thames Water on brink of collapse as crisis plan drawn up for UK's biggest supplier

Ministers have lined up insolvency practitioners to prepare for the potential collapse of Thames Water, according to reports.

Environment Secretary Steve Reed has reportedly signed off the appointment of FTI Consulting to advise on contingency plans for Britain's biggest water utility to be placed into a Special Administration regime (SAR).

Sources told Sky News that the advisory role established FTI Consulting as the frontrunner to act as the company's administrator if it fails to secure a private sector bailout.

However, approval of such an appointment would be decided in court.

A government spokesperson said: "The government will always act in the national interest on these issues.

"The company remains financially stable, but we have stepped up our preparations and stand ready for all eventualities, including applying for a Special Administration Regime if that were to become necessary."