Thames Water paid no corporation tax as bills soared

Thames Water, the UK's biggest, which supplies homes in Wiltshire, paid no corporation tax and received a £5million credit from the Treasury, in the same year that its revenues rose by £1.8million.

It made £549million in underlying pre-tax profits, at the same time raising bills by 6.7%.

The figures come in the wake of criticism by Jonson Cox, chairman of regulator Ofwat, that the high profits and tax-reducing corporate structures of some water companies were 'morally questionable'.

Thames Water said its taxable profits were reduced by allowances on its £1 billion-a-year investment programme, and remaining gains were offset by tax losses claimed from other members of the group.