Tories set out to sink Labour’s water bills campaign

Downing Street is scrambling to head off Labour’s next big challenge over the cost of living by promising new help for households with their water bills.
Ed MilibandEd Miliband
Ed Miliband

Number 10 said it plans to take “action” next week on water bills as Labour leader Ed Miliband switches his attention from the energy giants to the water companies.

The Yorkshire Post reported earlier this week how water was set to become the next political battleground in Westminster following weeks of debate over energy prices.

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It was confirmed yesterday that Skipton and Ripon MP Julian Smith has been successful in his bid to secure a major Commons debate on the activities of the big water companies, following widespread dismay at revelations Yorkshire Water paid no corporation tax last year despite paying out more than £250m in dividends to shareholders and hiking bills by six per cent.

The debate will be held on Tuesday afternoon, with Tory MP Mr Smith poised to set out in detail his concerns about the foreign-owned utility firm’s financial affairs.

Mr Miliband, meanwhile, told regional journalists he is prepared to take on the water companies in the same way he has challenged the Big Six energy firms over recent weeks if necessary.

“I think we should be looking at all markets to make sure they are working properly – and that includes the water industry,” the Doncaster North MP said.

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“Some people will say this is an anti-business agenda. I think it is a pro-business agenda that you have got to reform markets that are not working properly.

“I think the water industry is something that should be scrutinised to make sure it is working properly for the benefit of consumers, because I know concerns have been raised. “

Within hours of the Labour leader’s comments, Downing Street revealed there will be an announcement next week on water bills, via the Department for Environment, Food and Rural Affairs (Defra).

“There will be some action next week from Defra with the intention of looking at water bills,” a spokesman said. “The Prime Minister wants to see household costs across the piece being reduced as low as possible.”

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Mr Cameron “wants regulators to look at the industry and make sure they are robust and delivering what they need to for consumers”, the spokesman added.

But Shadow Environment Secretary Maria Eagle said the Government was once again trying to follow an agenda set by Labour.

David Cameron has never shown any interest in rising water bills, and has wasted three years doing absolutely nothing to address the impact on already over-burdened family budgets,” she said.

Comment: Page 16.