PEOPLE have been warned they will face higher water bills as climate change leads to more flooding.

Parts of North Yorkshire and County Durham were badly hit by floods last year. This has put increasing strain on water firms to build and maintain drainage systems able to cope.

Pressure groups are calling for more spending, warning that protecting the environment and providing cheaper water are not compatible.

Water companies say that bills will have to rise to pay for improvements such as underground storage tanks, which can be used to store rainwater.

Andrew Panting, of Northumbrian Water, said North-East customers had seen their bills cut by more than 19 per cent last year.

But the cuts, imposed by industry regulator Ofwat, could not be maintained, he said, if its spending was to increase.

"The bottom line is that it is not possible to have your cake and eat it, and we will not be able to maintain things at this level in the future, so bills will rise," said Mr Panting.

"It has been recognised by everybody that the cuts are too large, and they do affect our ability to invest."

If water bills were to rise, it would prove a double whammy for many householders badly affected by floods, such as those in York and along the River Gaunless, near Bishop Auckland, County Durham.

They could also face higher insurance premiums.