Call for Sewage Tax on Thames Water after £488.8m profit revealed

Reading Liberal Democrats have called for a ‘Sewage Tax’ on water companies to fund the cleaning up of rivers polluted by sewage dumps.

It comes as the Liberal Democrats have revealed Thames Water made a staggering £488.8m in operating profits last year. The figures, taken from Company House records, also show the water firm made £2,106.70m in revenue. 

The local Liberal Democrats have demanded a new tax on water companies’ profits after repeated sewage dumps in the River Thames. The ‘Sewage Tax’ of 16% on water companies would create an emergency fund for cleaning up rivers. The policy was officially backed by the Liberal Democrats at their Spring Conference in March.

New analysis by the Liberal Democrats has revealed Britain’s nine water companies made a total £2.8bn in combined operating profits last year. 

The move follows outrage at water companies discharging sewage into rivers over 400,000 times in 2020, according to the Environment Agency. Only 14% of England’s rivers are in good ecological health, according to the Rivers Trust. 

Reading Liberal Democrat campaigner James Moore said:

“These profits are absolutely scandalous. Our treasured local rivers have been polluted by disgusting sewage yet Thames Water is raking in massive profits without taking any action. 

“People around here are furious at how badly Thames Water treat our local environment

“It is time our local Conservative MP Alok Sharma finally stood up to the Government and Thames Water, especially after he chaired the recent COP26 climate conference. We need a MP willing to take action against these sewage dumps in our river.”

Leader of the Liberal Democrats Ed Davey MP said:

“An environmental disaster is taking place in our towns, cities and villages, yet the Government shows no signs of taking action.

“Last year the Government initially refused to ban sewage dumps in rivers, then they let water companies carry on as normal by failing to set meaningful timescales and targets. The very least they could do now is to force water companies to clean up their mess.