Water Bills: Crackdown On Costs Expected

Water bills may be "rolled back" after the Government vowed to get tough on the rising cost of living.

David Cameron's spokesman indicated that an announcement on water bills would be made next week.

The spokesman said the Department for Environment, Food and Rural Affairs (Defra) would be making the announcement.

He said: "There will be some action next week from Defra with the intention of looking at water bills.

David Cameron says he wants to see household costs cut

"The Prime Minister takes household bills across the piece seriously and wants energy prices to be rolled back and wants various things done, whether it's council tax being frozen, the flex on rail fares being brought down, MoT costs being frozen, these sorts of measures to protect household bills."

He added: "The Prime Minister wants to see household costs across the piece being reduced as low as possible. The intention is to try to reduce the burdens on hard-pressed families."

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

Concerns have been raised that consumers are being ripped off

The move comes after Labour leader Ed Miliband said the market needed to be scrutinised to ensure it was working for consumers.

The soaring cost of living has rocketed up the political agenda since Mr Miliband's pledge to freeze energy prices if his party wins the 2015 General Election.

Mr Cameron, seeking to win back the political initiative on energy policy from Labour, said last week he wanted to "roll back" environmental taxes that bump up energy bills, promising more details in Chancellor George Osborne's Autumn Statement on December 4.

Speaking on Friday at an event for regional newspaper journalists, Mr Miliband said: "I think we should be looking at all markets to make sure they are working properly - and that includes the water industry."

The Western Morning News quoted the Labour leader as saying: "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, and make sure it is working properly for the benefit of consumers, because I know concerns have been raised.

"I'm proud Labour is championing this agenda and I think it is consistent with believing what a market economy can do, and water is part of that."

Labour's environment secretary Maria Eagle said the party would look to amend existing draft legislation, review the need for tougher regulation, and push for new ways to help reduce bills for low-income households.

MPs are set to consider the reform and infrastructure of the water industry on Tuesday next week after Tory Robert Buckland secured a backbench debate.

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