‘Rain tax’ hopes dashed

Hopes of a Government U-turn to save churches and sports clubs from huge hikes in water bills — the so-called “rain tax” — have been dashed.

Ministers have ruled out making places of worship and non-profit making groups exempt from the higher charges — despite promising a review only three months ago.

The decision paves the way for United Utilities to switch back to the new charges — according to the size of the land occupied, rather than rateable value — next year.

An angry backlash against sky-high bills had forced the company to revert to the old charging system from April, but only for 12 months.

Sports clubs must apply to go back to the old, cheaper system — proving they are registered as a Community Amateur Sports Club — or two-thirds of their 2009-10 bill will be according to land occupied.

In April, Environment Secretary Hilary Benn attacked “very, very large increases in bills in a very short period of time” — and pledged he was “keeping the issue under close review.”

But now, in a letter sent to all North West MPs, Mr Benn’s department has ruled out any exemptions, insisting there is nothing wrong with the “principle behind the switch to site area charging.”

The letter says: “It is our opinion that the issues arising are a consequence of poor implementation that is not in line with Government or Ofwat guidance.

“Rather than introduce new legislation, our preferred approach is for United Utilities to work with the regulator to ensure that charging schemes are fair and in line with our guidance.”

The Scouts Association has estimated the total drain “from the pockets of children into the pockets of water companies” to be around £1.5m annually.

A 45,000-signature petition was handed in at No.10 earlier this year against the “rain tax”.

And a Commons motion has just been laid in parliament calling for Government to use the Flood and Water management Bill to allow Ofwat to introduce social tariffs for charitable groups and voluntary organisations to ensure they are protected from “disproportionately high price increases.”