Thames Water collapse could trigger Truss-style borrowing crisis, Whitehall officials fear

Thames Water’s investors have refused to pump more money into the company amid a standoff with the water regulator Ofwat. Photograph: Dylan Garcia ARPS/Alamy

Senior Whitehall officials fear Thames Water’s financial collapse could trigger a rise in government borrowing costs not seen since the chaos of the Liz Truss mini-budget, the Guardian can reveal.

Such is their concern about the impact on wider borrowing costs for the UK, even beyond utilities and infrastructure, that they believe Thames should be renationalised before the general election.