Thames Water given £3bn bailout after High Court battle

Thames Water has been handed a £3bn lifeline to save it from coming under government control.

The country’s largest water company has been on the verge of collapse for months.

But it has now secured a £3bn rescue loan after a High Court battle to ensure its survival for the next months.

The company has faced eye-watering debts of up to £19bn, hence why it has failed to invest in maintaining the vital pipe and drainage infrastructure needed to stop sewage pollution into rivers and seas.

It will receive £1.5bn upfront, then a further £1.5bn to tide it through an appeal to the industry watchdog to increase water bills by 53 per cent over the next five years – currently capped at 35 per cent.

The water company argued it would run out of money by the end of March if the emergency debt deal did not go through.

But it will still have to raise billions of pounds to repair its finances over the longer term.