The Labour Party would take water companies back into public ownership if it wins the General Election, according to BBC news.

A report late last night said that Labour would create nine new public bodies to run water and sewerage services in England and Wales, with companies taken back into public ownership.

Party sources told the BBC that this would see household bills reduced by £100 per household annually – around a 25% reduction -  as a result of no longer paying dividends to shareholders and reduced interest payments on company debt.

According to the report, a Labour party source told the BBC:

"Under Labour, rather than answering to its shareholders out to make a quick buck at the expense of increasing household bills and worsening service quality, utilities will be accountable to the bill payer, helping ease the burden of those struggling with the cost of living crisis."

The Labour Party is due to publish its General Election manifesto setting out its proposals later today.