Labour to Expand and Strengthen Penalties on Water Companies

I share resident’s anger at the current state of our water system, and I am delighted that this Labour Government is making progress on delivering our manifesto pledge to clean up our waterways.

Earlier this year I was proud to vote in support of our landmark Water (Special Measures) Act which has seen the banning of unfair bonuses for polluting water bosses. This means that bosses at United Utilities which serves Stockport have been banned from awarding executive bonuses this year due to serious environmental failures. Our community deserves clean waterways and responsible water management - not sewage spills and big payouts for failure.

Labour are also bringing forward systemic reform of the water sector including £104 billion of private investment to fix crumbling infrastructure and building new reservoirs to ensure water security.

Water companies who commit environmental offences could face quicker penalties of up to £500,000, under changes being considered by the Government.

A consultation has been launched to expand and strengthen the current range of financial penalties available to the Environment Agency (EA) in a bid to clamp down on more offences. Currently, the EA struggles to impose financial penalties for frequent, minor and moderate offending – such as some breaches of a licence or a permit. This is because it needs to prove an offence to the same high legal standard used in criminal courts – making penalties too expensive and time-consuming to pursue for less serious offences.

The changes would lower the standard of proof needed, making it much easier and quicker to hold water companies to account. They would sit alongside existing enforcement tools, including unlimited financial penalties where offending is proved to a criminal standard. There would remain the option of prosecution for the most serious offences.

The move builds on immediate action the Government has already taken across the water sector – including blocking unfair bonuses for polluting water bosses – and will form part of the longer-term reforms.