United Utilities postpones rain tax and sends in the spin doctors

It is for each company to decide its own precise approach within the overall framework set by its licence. United Utilities, which is expecting to use the rain tax to drain £3 million from churches, clubs and charities, has been accused of bullying its charitable customers. If rain tax bills have been disputed then organisations lost any transitional relief and threatening solicitors’ letters have been sent. United Utilities also has the highest rain tax bills in the UK.

As a result of gathering anger, Ofwat recently convinced United Utilities to postpone the full costs of the rain tax. During the next twelve months United Utilities believes it can convince the charitable sector that the rain tax is a fair tax.

The Bishop of Middleton said, “Last week United Utilities placed a moratorium on the ‘rain tax’, postponing its introduction for twelve months while they try and convince us that draining churches, charities and clubs is a good thing. The fact that United Utilities is looking again at its charging structure is at least a recognition of just how indefensible the ‘rain tax’ is.  Merely postponing the ‘rain tax’ for twelve months does not begin to address the underlying problem.  The effect of the policy imposed by the Government and Ofwat is to transfer a financial burden from businesses and other trading organisations to churches and many other community premises.  That is nonsense and the Church of England will, with others, be continuing to press the Government, Ofwat and the water companies for a fair and permanent solution.”

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Charging Band 

Chargeable Area

(m2) 

Surface Water

(£) 

Highway Drainage

(£) 

Surface Water and

Highway Drainage (£) 

 1

 0-124m2

 49

 49

 98

 2

 125-299m2

 122

 122

 244

 3

 300-649m2

 273

 272

 545

 4

 650-1,499m2

 617

 616

 1,233

 5

 1,500-2,999m2

 1,290

 1,290

 2,580

 6

 3,000-6,999m2

 2,868

 2,867

 5,735

 7

 7,000-11,999m2

 5,448

 5,448

 10,896

 8

 12,000-17,999m2

 8,603

 8,602

 17,205

 9

 18,000-24,999m2

 12,330

 12,330

 24,660

 10

 25,000-49,999m2

 21,506

 21,506

 43,012

 11

 50,000-74,999m2

 35,843

 35,843

 71,686

 12

 75,000-99,999m2

 50,181

 50,180

 100,361

 13

 100,000-124,999m2

 64,518

 64,518

 129,036

 14

 125,000-149,999m2

 78,856

 78,855

 157,711

 15

 150,000m2 and above

 81,447

 81,446

 162,893