Half of Britain is now officially in drought, in the worst national water shortage since 1976 – a situation that may last until Christmas or beyond.

The hosepipe ban has put certain water firms under such pressure that at least one is considering deals with other companies across the country.

Not much happens in Manton, a tiny village in the Wiltshire countryside. Its residents enthuse about horse-racing – after all, some of Britain's best stallions are housed in stables there. The villagers also enjoy gardening. The place is full of greenery and, on a cold afternoon yesterday, some homeowners were admiring the fruits of their labour.

With hosepipes banned in some areas, a lack of water could impact us all. By Charlie Cooper

There may be blizzards in the north, but much of the UK is so gripped by drought that, from today, millions of people will be subject to draconian restrictions on their use of water

Britain's highest water bills are set to be cut by £50 a year after a £400 million handout to a private company cleared Parliament tonight.

Millions of households will have hosepipe bans by Easter, water firms announced today as the Environment Agency warned of "severe drought" in the coming months.

Parts of Britain are already drier than they were in the infamous summer of 1976. Cahal Milmo reports

Hosepipe bans and rising food prices are set to hit millions of Britons after the Government raised the prospect of a spring and summer drought across a swathe of England following one of the driest winters on record.

The prospect of hosepipe bans in the coming weeks was looming for parts of England today as drought was officially declared in the South East.

Burst water pipes are causing problems on the country's roads as the big freeze persists.

China's state-run investment fund dipped its toe into the UK today by snapping up a slice of the country's biggest water and sewerage firm.

Thames Water was today urged to pay compensation to thousands of rail passengers hit by travel chaos because of a burst water main after the company said it was not liable.

John Howard Davies would still have had a minor place in entertainment history through his affecting performance as the protagonist of David Lean's film of Oliver Twist (1948). But his reputation rests on having produced and directed some of the most acclaimed examples of BBC television comedy. Monty Python, Fawlty Towers, The Good Life, Steptoe and Son and The Fall and Rise of Reginald Perrin all prospered under the air of quiet calm that he exuded, in an often frenetic industry. His frequently stated guideline was, simply, "It's got to be funny."