THAMES WATER’S potential collapse shows the Tory privatisation experiment to have been a “devastating failure,” unions said today amid reports that ministers are preparing an emergency nationalisation of the troubled firm.

GMB argued that the “chickens are coming home to roost” after the debt-laden utility giant confirmed that it is working with shareholders to secure the finance needed to stay afloat.

Thames Water chief executive Sarah Bentley resigned with immediate effect on Tuesday after being forced to raise £500 million in March to fend off the company’s collapse.