Water companies are drawing up plans to increase household bills by up to 40 per cent to pay for the cost of tackling the sewage crisis and the consequences of climate change.
In a move that has alarmed ministers, England’s privatised utilities said that they needed the extra money to meet strict pollution targets.
The rises are due to be announced next year and could result in annual bills increasing from an average of about £450 to £680, plus inflation, in parts of the country.
Jeremy Hunt, the chancellor, is due to raise the matter at a meeting on Wednesday with the water regulator Ofwat. Water prices rose in April by up to 11 per cent in some areas.
Under a process being run by
