MPs blast Government’s crumbling infrastructure

MPs have described the Government’s infrastructure plans as “more regressive than taxation” as the poorest are expected to be hit hardest by extra charges.

That is because consumers are facing an extra £250 billion on their household bills, money which will be used to pay private companies for repairing their own crumbling infrastructure, with no guarantee that the repairs will actually benefit consumers.

The most vulnerable people would be hit hardest by the extra charges, the Public Accounts Committee has warned.

MPs on the committee have demanded that the Treasury calculate how hard-pressed consumers will be able to afford the extra costs.

Margaret Hodge, the chair of the committee, said: “No one in Government is taking responsibility for assessing the overall impact of this investment on consumer bills and whether consumers will be able to afford to pay.”

The total bill to replace the country’s ageing infrastructure, help meet policy commitments such as climate change targets, and meet the long-term needs of a growing population, is estimated at £375 billon.

“It is the consumer – through their various bills – that is expected to fund at least two-thirds of this investment where the infrastructure is financed, built, owned and operated by private companies,” Hodge said.

“Currently, consumers rely solely on Government and regulators to protect their interests. But it doesn’t take much nous to work out that this is going to have a tough impact on the consumer.”

She is concerned that making consumers pay for such essential improvements as updating ageing pipework and reservoirs through their bills will leave struggling people unable to afford to pay for their energy or water.

The report points out that median incomes did not rise significantly in the decade to 2011, while energy bills soared by 44% and water bills by 21%, in real terms.