HOUSEHOLDERS in Billinghay and Sleaford could face flooding and sewage problems in the future thanks to plans to reduce average water bills by about £3 per year.

That's the prognosis offered by Anglian Water, which says regulator Ofwat's decision last week will prevent them from spending more than £200m on infrastructure improvements.

A spokesman for the company, Anne-Marie Hamill, said it was too early to comment on which areas of Lincolnshire might lose out.

But chief executive Jonson Cox said: "This is a harsh determination from Ofwat and no-one should be under any illusion we will now have to make significant cost cuts and efficiency improvements to meet the tough financial targets we have been given."

He went on to say in response to customer feedback the firm had put forward a business plan they thought "struck the right balance between keeping bills down, being able to invest in essential infrastructure and in securing water supplies against the impacts of climate change.

Mr Cox said: "We remain concerned Ofwat has rejected a number of important proposals we put forward.

"In particular, the cut of more than £80m we had earmarked for securing water supplies and sewerage services in vulnerable areas and further prevention of internal sewer flooding.

"Ofwat also reduces by more than £125m our plan to invest in infrastructure for this fastest growing region of the UK, which we believe will risk undermining housing growth, economic competitiveness and job opportunities."

But for residents already seeing the effects of an aging water network, the news could come as a blow.

Walcott mother Sarah Wingham has seen her family of four suffer years of sewage flooding outside their home.

And, while their problems seem finally to be moving towards a resolution, she said there must be numerous others who need the water company to invest in the local infrastructure.

She said: "We can't be the only village. It might not be flooding with sewage, but many people will not be able to live their lives as normal when it rains.

"At some point in time these problems will affect other people in other villages and Anglian Water have to be able to tackle the infrastructure."

Mrs Wingham's husband Kevin added if it was a choice between paying an extra £3 and seeing the investment, or not paying and flooding then he would happily pay the higher bill.

He said: "I appreciate the regulator wants to keep bills down, but with aging infrastructure these problems are only going to get worse.

"Particularly in rural areas, we're the ones who are suffering.

"We know it's not just us as there's similar problems down in Billinghay.

"They need to ask the consumers what they want."

For more information, visit www.anglianwater.co.uk