Britain’s biggest water company has hired Rothschild and Slaughter & May to help evaluate financing options for its vast balance sheet, Sky News learns

Thames Water is facing crunch talks over its finances amid mounting concerns about its ability to service a debt mountain which stands at more than £14bn.

Sky News has learnt that Thames Water, which is privately owned and employs about 7,000 people, has in the last few weeks hired Rothschild, the investment bank, and the law firm Slaughter & May to explore financing options for the company.

The appointment of the advisers has taken place against a backdrop of growing public and political fury about the company’s dire record at preventing leaks and raw sewage discharges.

Thames Water serves nearly a quarter of Britain’s population, with 15m customers across London and the Thames Valley.

Industry sources said the government and Ofwat, the industry regulator, were aware of growing concerns about its financial position.