Ainsworth: Government Must Act Now to Protect Voluntary Groups From "Rain Tax" Print
Friday, 17 July 2009 00:00

East Surrey MP, Peter Ainsworth, has called on the Government to take immediate action to protect voluntary groups across East Surrey from soaring water charges.

Dubbed the ‘rain tax’, changes to surface water drainage charges are being introduced by some water companies. Many churches, scout groups and amateur sports clubs across the country will pay hundreds of pounds more in higher bills, in some cases amounting to a third of their yearly revenue.

Thames Water and Southern have not so far introduced site-area charging for non-domestic customers. However, in line with Government guidance, Ofwat has asked all water companies to review their charging schemes by 2010.

Such charging by site area falls disproportionately on churches and sports clubs which often have large roofs, a large open area or a sizeable car park. The new charges could cost the Church of England £15 million a year. The Scout Association estimate that the changes could cost scout huts £500 a year, equivalent to 25 to 30 per cent of their yearly income. Such voluntary groups currently have exemptions or discounts for business rates, but this will not extend to water rates.

Mr Ainsworth said:

“The Government must change the law so that water companies are able to reduce these charges for voluntary groups. Not-for-profit organisations play such a vital role in our communities, and it is only right that this is reflected in a fairer deal.

“I have written to both the Minister and the Chief Executive of Ofwat to raise not only my own concerns, but also the concerns of the constituents who have contacted me about this issue. I am very much hoping for a positive response.”