Yorkshire Water chairman Brandon Gough has been accused of "partying with shareholders' money" after he hosted a top-notch lunch at the Ritz.

Penny Ward, of water industry pressure group Water Watch, today hit out at the £1,200 lunch provided by the Yorkshire Water chairman for industry fat cats - only weeks after YW announced it was to make 500 people redundant in a bid to cut costs.

The costs involved spending £500 hiring a room at London's Ritz and £740.40 on a five-star lunch - all paid for by Yorkshire Water's parent company Kelda Group.

The meeting was for the chief executives and chairmen of other water companies.

Penny Ward said: "This is scandalous. Brandon Gough is left with a number of questions to answer to shareholders about squandering money. This has come only months after Yorkshire Water said it was to make hundreds of people redundant to save costs.

"There was no need for them to hire expensive rooms and party at our expense. They have every opportunity to discuss water industry issues at their extravagant premises," she added.

Yorkshire Water said the meeting was a regular event and issued a statement today which read: "Brandon Gough, the retiring chairman of Kelda Group, was hosting a business lunch for the chairmen and chief executives from companies across the UK.

"The £1,240 bill covers a meal for eight and includes the hire of the room which was £500. Mr Gough was the only person present from Kelda Group. The event was held in London as this was the most convenient location for all those attending. The costs have been borne by Kelda Group."

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