Vince Cable

Thames Water, the local water and sewage company, has been told by OfWat, the regulator, to keep down its bills by cutting back on investment. The plans to replace old water mains have been cut by half, so there will be no reduction in water leakage in the next five years; the budget to cut sewer flooding has been cut by a third; and there is a big cut in the installation of water meters. Investment to cut sewage overflow form Mogden will however go ahead. The aim of the OfWat proposals is to keep down water rates to no more than the rate of inflation.

Vincent Cable said: "in future, there will be a change in tack. The environmental improvements most people want to see - reduced leakage from pipes and a reduction in sewer flooding - won't happen. The progress of recent years will grind to a halt. It is of course welcome that water rates will be held down and there is also to be a Social Tariff for low income customers."