An MP has called for water company Thames Water to be placed into special administration.

Alex Brewer, the Liberal Democrat MP for North East Hampshire, says the move is necessary to protect customers following the collapse of a £4bn rescue deal with US investor KKR.

Thames Water had identified KKR as its preferred partner for a potential takeover, in a bid to stabilise the company, but the deal fell through on Tuesday, June 3.

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Alex Brewer MP. (Image: Parliament) Ms Brewer said: "Thames Water's last hope has now abandoned it, leaving the firm without a chance of addressing its crumbling infrastructure, endless fines, and lack of investment. It's now at the end of the road.

"This model of water provision is clearly broken and we need to be looking to the future, to invest in infrastructure, protect the environment and take measures against flooding.

"Allowing the company to keep piling on debt serves no purpose, and is unfair to the customers who will ultimately pay the price.

"The time has come for the Government to finally bite the bullet and put the company into special administration."

In February, Thames Water, which has 16 million customers, faced with more than £20bn of debt, secured a £3bn lifeline loan to keep the company afloat while it looked for a potential buyer.

The two firms were on-track to complete a £4bn rescue deal before KKR's withdrawal.