Work is being done to prepare for an interim nationalisation of Thames Water, says the Financial Times.

The paper says that, amid the turmoil, the price of a 2026 bond sold by Thames Water’s parent company, Kemble Water Holdings, has plunged by 35p to 50p. It also quotes Cathryn Ross, interim co-chief executive, saying earlier this month that the company has made a “very large loss and that is not ideal in terms of raising capital”.