WATER firm Severn Trent said it had reduced leakage to a record low level as it pledged to invest an additional £150m in its network.

Severn, which supplies 8m customers across the Midlands and the heart of England, said the amount of water lost through leaks fell by 7% in the year to the end of March, below the target set by regulator Ofwat.

The improvement – together with a 1.6% fall in consumption – helped the company to repeat its expectation that it will not have to enforce a hosepipe ban over the current financial year.

The group will spend an extra £150m over the next three years on water security on top of £1.6bn already planned. Underlying pre-tax profits fell by 4.6% to £275.3m despite a 3.5% rise in turnover to £1.8bn.