Sunak denies move to scrap pollution fines

The prime minister has denied reports that government will U-turn on its plans to level £250 million fines at water companies that pollute rivers and streams, despite the environment secretary apparently indicating this was the case.

Rishi Sunak told reporters in Oldham he still wants to see companies held to account over pollution incidents and that a report in The Times was “categorically not true”.

“I actually would welcome tougher fines for water companies and that is what we are putting place,” he said.

“Not only are we holding them to account for putting in place the largest investment in our water infrastructure in decades – £56 billion of investment that we are expecting the water companies to put in – we will hold them to account for their part in reducing the overflows, and there will be very significant fines for them if they don’t do their part in this,” Sunak explained. “That is what the government is delivering and that’s what I’m committed to doing.”

Therese Coffey, secretary of state for environment, food and rural affairs, was reported to favour exploring different options for cracking down on companies that pollute. Coffey’s short-lived predecessor under Liz Truss’ cabinet, Ranil Jayawardena, announced fines up to £250 million would be levied at environmental crimes.

Sector insiders told Utility Week that Defra was “playing to the gallery” because, in practice, hefty fines would be too complex for the Environment Agency to administer.

At present, the EA can issue monetary variable penalties (MVPs) up to £250,000 or, for more serious offences, criminal proceedings can be brought against polluters with uncapped fines.

The agency often opts for enforcement undertakings, which include a company’s commitment to remedy damage caused by a pollution incident and a fine used directly in the catchment.

A consultation on additional powers for the EA is due to be launched this spring.