'Rain tax' storm over

The Government has announced that it will now intervene after a campaign against the so-called ‘rain tax’ which saw water bills rise as much as 1400%.

Addressing the Labour Party conference, Environment Minister Hilary Benn said water firms would now be able to offer concessions for surface drainage.

United Utilities has been moving towards charging non-household customers in England and Wales for surface water drainage based on the size of their premises rather than the rateable value because it is more cost reflective and provides an incentive to install sustainable drainage systems to reduce both surface water run-off and bills.

Ofwat had advised the companies that they could not give concessionary charges to customers, including community groups, because it would be unduly preferential and unduly discriminatory.

In Rochdale, this had led to disproportionately high bills for community organisations. This proposed legislative change will clarify that concessionary schemes can be operated, balancing the needs of all customers.

The Bishop of Middleton, the Rt Revd Mark Davies, said: “We're delighted the government has announced it is going to intervene to stop Ofwat's rain tax and introduce a sensible social water charging regime. This announcement will be welcomed by all community groups across England and Wales who have been frustrated by Ofwat's failure to understand the damage and financial hardship their policies were causing to charities, churches, clubs and groups.”

Councillor Pauline Maguire, who is a Beaver Scout leader at the 29th A Rochdale (Starring) Scouts Group, said: “I am delighted that the Government has finally woken up and is now taking the action that we have been demanding for several months.

"This tax would have resulted in a huge increase in water bills for many churches, sports clubs and youth groups across Rochdale making it impossible for some of them to carry on.

"I know that my Beaver Scout Group and many others across the country will be absolutely delighted with this news.”

Rochdale MP Paul Rowen, who has pressed Defra and Ofwat on this issue for several months said: “I am delighted that the Government has listened to our calls for a need to introduce the necessary legislation to protect local organisations against this unfair tax.

"Over the last few months I have had many non-profit community and voluntary groups such as Rochdale Cricket, Lacrosse and Squash Club contact me regarding their concerns about this issue. I wrote to Environment Minister Huw Irranca-Davies on several occasions asking the Government to take action and I’m glad to see that our pressure has paid off.

"The ‘rain tax’ would have seen water rates increase by around 1400% - costing local community groups in Rochdale hundreds of pounds each year. This would have put the future of many community groups across Rochdale and risk and I am glad to see that the Government has finally seen sense.”