Thames Water reveals huge debts day after confirming hosepipe ban for 1.1m Brits

Thames Water has revealed it is nearly £17 billion in debt less than 24 hours after announcing a hosepipe ban that will affect 1.1 million Brits. The under-fire water firm revealed on Tuesday morning it has slumped to a £1.65 billion annual pre-tax loss from profits of £157 million the previous year and saw its debt mountain increase to £16.8 billion.

Thames Water's CEO, Chris Weston, said it is making progress in a plan with its senior creditors to recapitalise the business. He said: “We recognise that our current gearing is too high and, to address this, we are progressing with our Senior Creditors’ plan to recapitalise the business which will see us return to a more stable financial foundation. This will come with a requirement to re-set the regulatory landscape and acknowledge it will take at least a decade to turn Thames around.”

He added the firm has made "good progress in operational performance, despite the ongoing challenging financial situation".

Yesterday, the company announced a hosepipe ban will begin next Tuesday for customers in Oxfordshire, Gloucestershire, most of Wiltshire and some parts of Berkshire. The water company said the measure will be brought in after the Environment Agency placed its area into the “prolonged dry weather category”. The ban will begin on July 22 for customer in all OX postcodes, all GL postcodes, all SN postcodes as well as customers in RG4, RG8 and RG9 postcodes.

THIS IS A BREAKING NEWS STORY AND IS BEING CONSTANTLY UPDATED.