The government has reportedly lined up an insolvency firm in a bid to prepare should Thames Water collapse.

According to Sky News, environment secretary Steve Reed has agreed to appoint business advisory firm FTI Consulting to advise on plans for the utilities giant if it needs to placed in a special administration regime (SAR).

A SAR is an insolvency process for companies that provide a statutory or critical public service or supply.

Thames Water, which covers a large area of London and the Thames Valley as well as Oxfordshire, Berkshire, Wiltshire and Gloucestershire, slumped to a £1.65bn annual loss in July and saw its debt mountain balloon to £16.79bn.

The government's agreement to appoint FTI Consulting does not indicate Thames Water is about to collapse however.

It is understo

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