The profits of water companies in England and Wales have nearly doubled since 2019.
In the current parliament that began in 2019, a study conducted by the Liberal Democrats using data from Companies House shows that water companies have seen a rise of 82% in their pre-tax profits.
In the fiscal year 2022-23, it was discovered that water companies in England earned a total of £1.7 billion in pre-tax profits, marking an increase of 82% from 2018-19 when they earned £955 million. In the past three years since 2018-19, water companies have accumulated a total of £4.2 billion in pre-tax profits.
During the upcoming Lib Dem spring conference, the party plans to unveil a series of proposals to prevent water companies from prioritizing profits above environmental concerns. These include proposing a 16% surcharge on top of corporate taxes for water firms, with the additional funds being allocated towards river cleanups and the salaries of environmental journalists in every region. The party is referring to this initiative as a “sewage tax”.
Water utilities are devising a strategy to raise billing rates by a maximum of 40% within the next 10 years in order to finance crucial upgrades in their infrastructure, including rectifying damaged pipelines and constructing fresh sewage systems. A significant portion of water expenses, specifically 28% for Thames Water, is also allocated towards paying off debts.
The Lib Dem leader, Ed Davey, said: “These eye-watering profits are a national scandal. Whilst our rivers, lakes and coastlines get destroyed by raw sewage, these polluting firms are laughing all the way to the bank. Frankly, the whole thing stinks.
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This serves as definitive evidence that water companies have thrived and escaped consequences for their harmful impact on the environment under the Conservative party. The UK requires a fresh group of journalists focused on local news to ensure that corporations causing pollution are held responsible.
This ambitious strategy aims to raise public consciousness about environmental disasters and also hold influential corporations responsible. There are numerous accounts to share within our communities, making it appropriate that water companies contribute to support the development of future investigators of sewage issues.
“I am honored to have initiated our party’s campaign on this matter three years ago, bringing attention to water quality at Westminster. Liberal Democrat volunteers nationwide are leading the charge against water companies that pollute and prioritize profits.”
Water UK, the representative organization for the water industry, has been requested for a statement.
Source: theguardian.com
