Water companies in England and Wales have come under fire for nearly doubling their profits since 2019, with pre-tax profits climbing by a staggering 82% during this parliament, according to a recent analysis.
The Liberal Democrats have revealed that in the 2022-23 financial year, water firms in England made a combined £1.7bn in pre-tax profits, up from £955m in 2018-19. This brings the total profits made by water companies since 2018-19 to £4.2bn.
At the upcoming Lib Dem spring conference, the party is set to announce a series of measures aimed at curbing the prioritization of profit over the environment by water companies. This includes proposing a 16% levy on top of corporate tax for water firms, dubbed the “sewage tax,” to fund river cleanups and the salaries of environmental journalists in each region.
Water companies have justified their plans to increase bills by up to 40% by the end of the decade as necessary for infrastructure improvements, such as fixing leaky pipes and building new sewers. However, a significant portion of water bills also goes towards servicing debt, with Thames Water allocating 28% for this purpose.
Lib Dem leader Ed Davey has condemned the soaring profits of water companies, accusing them of environmental vandalism and calling for greater accountability. He emphasized the need for increased public awareness of environmental issues and the importance of holding polluting companies accountable.
The party’s campaign against polluting and profiteering water firms has gained momentum, with activists across the country joining the fight. Water UK, the industry’s representative body, has been contacted for comment on the matter.
As the debate over water companies’ profits and environmental impact continues to escalate, the spotlight remains on the need for greater transparency and accountability in the industry.