Thu 18 Jul 2024

 

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Polluting water firms face ‘severe’ fines, ban on bonuses and criminal charges

The Water (Special Measures) Bill is set to bring in tougher fines and sanctions for water companies responsible for sewage spills

Ministers will introduce a crackdown on water companies through the introduction of a new Water Bill, in a major victory for i’s Save Britain’s Rivers campaign.

The Water (Special Measures) Bill will bring in tougher fines and sanctions for water companies responsible for sewage spills, the King confirmed today, as he set out the Government’s legislative plans for the next year.

It will include “severe and automatic” fines for polluting water companies and powers to pursue personal criminal liability charges against executives.

The payment of water bosses’ bonuses will be banned when environmental standards are not met and a new code of conduct will be introduced for firms so customers can summon board members and hold executives to account.

These policies were all included in Labour’s manifesto and have been welcomed by green groups; however, it remains unclear how aspects of the bill will work in practice.

For example, Labour is yet to spell out the circumstances under which water companies will face automatic fines or the legal mechanisms that will be used to pursue water bosses in court.

While the banning of bonuses is an idea that is popular with the public, environmental groups have questioned whether the policy will make a difference.

It comes after 18 months of i campaigning to Save Britain’s Rivers, which are in a dire state owing to a deluge of pollution from sewage works, farms and motorways.

In the lead-up to the general election, i called on all the major parties to commit to a five-point manifesto to reduce pollution and restore our waterways to their natural condition.

Some of these measures will be introduced in the new Water Bill – which will apply to England and Wales – including tougher powers for the regulator Ofwat and increased prosecutions against water companies.

It will also require water companies to install real-time monitors at every sewage outlet across the country, including the 7,000 ‘Emergency Overflows’ that are currently not being monitored for sewage spills.

i drew attention to the problem earlier this year, revealing that water companies were dumping sewage unchecked at nearly 900 spots in protected natural areas in England.

But i is still calling on the Government to go further, most notably by using its first Budget to increase funding for the Environment Agency so it can properly monitor sewage spills, as well as grants for farmers so they reduce agricultural pollution. The Chancellor Rachel Reeves is expected to unveil the Government’s spending plans in the autumn.

Analysis: will Labour’s plan turn the tide on the sewage crisis?

by Lucie Heath, Environment Correspondent

The Government will keep true to its promise to put water companies on “special measures” through the new Water Bill. 

The law will include a number of pledges from Labour’s manifesto, including powers for personal criminal charges against water bosses and a ban on bonuses when environmental standards are not met. Automatic and severe fines against law-breaking water companies are also to be introduced. 

Some of these changes will be more consequential than others; several water bosses already forgo their bonus payments and while these six-figure payments spark public outrage, the amount is tiny in comparison to what is needed to solve the sewage crisis. 

Severe and automatic fines for water companies is a policy that is likely to be particularly popular with campaign groups, many of whom argue that water companies are able to get away with pollution due to small and infrequent penalties. It is currently unclear the circumstances under which these fines will be dished out; this detail will be crucial in determining the impact of the policy. 

As the Water Bill covers all of the policies in Labour’s manifesto, it was interesting to hear the King describe the legislation as a “first step” to clean up our rivers and promise further legislation down the line. 

To understand how serious Labour really is about tackling the sewage crisis, we will need to wait for the Government’s first Budget in the autumn. As part of our Save Britain’s Rivers campaign, i and more than 20 green groups are calling on the Government to boost funding for the Environment Agency so it can properly police water companies, as well as farmers so they can manage their land in a manner that would reduce agricultural pollution. Will the Government put its money where its mouth is? 

Announcing the Government’s legislative plans for the next year in the House of Commons on Wednesday, the King described the Water Bill as a “first step” and said ministers planned to “outline further legislation to fundamentally transform and reset our water industry and restore our rivers, lakes and seas to good health”.

It comes after i revealed last week that the Environment Secretary, Steve Reed, had also written to Ofwat asking the regulator to introduce customer refunds if water companies do not use their allocated infrastructure spend on upgrading their network.

Mr Reed is under pressure to clamp down on water companies and has said that tackling the sewage crisis is the number one priority for his department.

Environmental groups and river campaigners have broadly welcomed his early interventions on the issue, but have warned that Labour’s current policies will not go far enough to turn the tide on the crisis.

#1. RIVER HEALTH: 77% of rivers in good health by 2027 

Current situation: England’s rivers were once havens of biodiversity, but the vast majority are now struggling to support healthy ecosystems of plants and wildlife. Just 14 per cent of rivers in England are currently in good ecological health and not a single river has achieved good chemical health. The current Government has set a legal target that 77 per cent will achieve good ecological status by 2027 – but without urgent action this will not happen. 

Target: Within its first six months in power, the next Government will publish a roadmap on how it is going to achieve this existing legal target, and its long-awaited chemical strategy. The plan must include increased funding for the Environment Agency so the watchdog can do its job – and enforce the law.  

#2. SEWAGE: Sewage spills will not damage high-priority areas – including bathing spots and nature sites – by 2030 

Current situation: Bathing waters and nature sites are being destroyed by sewage spills, but water companies will not be required to clean up all these spaces until 2045. 

Target: Untreated sewage will not cause damage to high-priority sites (which are bathing spots, protected nature sites, National Parks and chalk streams) by 2030. Water companies who fail to meet this target will be prosecuted. Nature-based solutions will be used to clean up sewage wherever possible. 

#3. WATCHDOG: Regulators will stop water companies destroying the environment in pursuit of profit

Current situation: Water companies have paid their investors healthy dividends while failing to invest enough in their infrastructure to prevent environmental harm. This is partly caused by a disjointed regulatory system that prioritises economic outcomes over the environment.  

Target: Within its first year in power, the next Government will publish a plan to reform regulation of water companies. This plan must be legislated on and executed within the first term of Parliament. This will include tougher powers to restrict dividends and bonuses for underperforming water companies, alongside greater resources to pursue prosecution. A “green duty” will be placed on Ofwat, which will force the regulator to place greater emphasis on the environment when making decisions over water companies’ business plans.  

#4. BATHING: Create 100 clean bathing spots in rivers by 2030

Current situation: People in the UK have discovered the joy of wild swimming. But there are only 15 official bathing spots in English rivers, and many are not safe. 

Target: 100 bathing spots in English rivers by the end of the next Parliament. The Environment Agency must start monitoring water quality throughout the year and take action to improve water quality at these sites. Bathing regulations will be altered so polluters can be prosecuted when bathing sites fail water quality tests.  

#5. FARMING: Farmers must be funded to improve water quality, and face enforcement action if they damage the environment

Current situation: Agriculture is the biggest source of pollution in many rivers, but many farmers warn they are struggling to make ends meet under post-Brexit farming subsidies. Meanwhile, the Environment Agency is failing to enforce farming water-quality regulations.   

Target: Within its first year in power, the next Government will strengthen its Environmental Land Management scheme so farmers are given more grants, support and advice to undertake activities that will improve water quality. The Environment Agency will commit to a year-on-year increase in the number of farms being inspected – and take enforcement action against those who commit breaches of the “farming rules for water”.

How you can take action to Save Britain’s Rivers

If you want to push the next Government to act to protect Britain’s rivers, you can support i’s manifesto by doing the following:

  • Write to your local MP election candidates, asking them if they will support i’s five-point plan and push for it to be incorporated into their party’s manifesto in time for next month’s election.
  • Write to your local water company, urging them to sign up to the pledges and to be part of the solution to Britain’s polluted rivers, not part of the problem.
  • Share i’s manifesto on social media and amongst your local community.
  • Get involved with the groups supporting i’s manifesto, who are already doing incredible work to conserve our precious waterways
  • If you have a story about your local river that you think should be featured in our campaign, contact lucie.heath@inews.co.uk

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