Britain’s Environment Agency on 12 August declared the country’s water scarcity a matter of “national importance” after the driest first half-year since 1976. Five of England’s 14 regions are now officially in drought and reservoir storage has fallen to 67.7 % of capacity, well below the early-August average of 80.5 %. The agency said 49 % of rivers are running below normal flow, and officials urged households and businesses to curb use as a fourth summer heatwave looms. The deepening shortage is adding pressure on Thames Water, the nation’s largest water utility. The heavily indebted supplier is seeking about £5 billion ($6.7 billion) from senior bondholders to shore up its balance sheet. Concerned about a potential collapse, the UK government has appointed FTI Consulting to draw up contingency plans, including placing the company into a Special Administration Regime that would keep essential services running under state oversight. A government spokesperson said Thames Water “remains financially stable” but added that Whitehall “stands ready for all eventualities” to protect consumers and the wider economy. The twin crises of prolonged drought and corporate fragility are intensifying scrutiny of the country’s water infrastructure and its ability to cope with climate-driven extremes.