Residents and local authorities in towns, cities and villages close to water could be left facing an £11 billion liability because of unfair and unaffordable insurance premiums, council leaders have warned.

News that United Utilities is planning to develop a £2.6bn pipeline to pump water from the water-rich North to drought-stricken Southern England raises fundamental questions about whether major infrastructure projects of national significance should be left in the hands of the water companies alone.

May Gurney is becoming increasingly involved in the development of hydro power generation for its clients in the water sector.

Thames Water has started work on strengthening a burst-prone water main outside Lord’s cricket ground as part of a five-month project. The utility said that reducing water wastage from the network was its top priority in the face of below-average rainfall for 18 months.

In its latest interim Results for the six months to 31 December 2011 published yesterday, Kier Group, part of the KMI Plus joint venture in United Utilities' AMP5 capital delivery framework, has reported a 10 per cent fall in its half-year revenues and a fall in construction margins – down to 2.5% compared with 2.7% for the same period in 2010.

The Government has made available an extra £1 billion is available to businesses seeking support to help them create new jobs and grow - manufacturing industry is being urged to bid for extra growth funding.