Water firms to lose public funds unless they pledge to stop UK sewage spills

Helena Horton Environment reporter
Wed, 1 February 2023 

Photograph: Maureen McLean/REX/Shutterstock

Taxpayer money may no longer be invested in water companies that fail to produce adequate plans to stop sewage discharges, after the government accepted a Liberal Democrat amendment.

The change to the UK infrastructure bank bill means that once it becomes law, tax receipts will only be able to fund water companies if they produce a costed and timed plan for ending sewage spills into waterways.

The new post-Brexit UK Infrastructure Bank is a state-owned development bank designed to help the UK government reach net zero carbon emissions by 2050.

Originally, it could have given cheap finance to any water companies that wanted to make improvements to infrastructure. It will have £12bn of startup capital, comprising £5bn of equity from the Treasury and £7bn of debt. It will also be able to provide up to a further £10bn of guarantees.

Richard Foord, MP for Tiverton and Honiton, tabled the bill and said the government had previously written a “blank cheque” of taxpayer money to water firms to invest in their infrastructure.

The Lib Dem MP said: “This is a victory for millions of people across the country who have voiced their outrage at water companies being allowed to get away with polluting rivers and coastlines.

“My amendment ensures water companies won’t receive a blank cheque with taxpayers’ money whilst they pollute our rivers and damage local wildlife.

“It would have been scandalous for taxpayers’ money to be thrown at firms who pay their execs multimillion pound bonuses, all whilst destroying our environment.”

Earlier on Wednesday, environment secretary Thérèse Coffey hit out at the Lib Dems for their claim that the Conservatives’ new sewage bill effectively legalised waste dumping.

She said: “This is not the first time that Liberal Democrats have put stuff out and it has been a complete load of the proverbial.”

The Department for Environment, Food and Rural Affairs has been approached for comment.