Thames Water crisis deepens as owner defaults on debt

The parent company of Britain’s biggest water company has defaulted on a £400 million loan amid concerns that taxpayers could be left on the hook for billions of pounds.

Kemble, which owns Thames Water, informed bondholders in a formal notice that interest payments due this week “have not been paid”.

The announcement creates further uncertainty over the future of the water supplier and will fuel concern that it could be taken into the government’s special administration regime — a form of temporary nationalisation — leaving taxpayers exposed.

Steve Barclay, the environment secretary, is opposed to any bailout. A source close to him said: “Steve is not going to be bounced into easing the regulatory regime to allow Thames Water to pump sewage into rivers