Unlimited fines for companies that cause pollution are edging closer to reality as the government sets out proposals to extend enforcement powers for the Environment Agency.
Dishing out uncapped penalties was first mooted last year by short-lived environment secretary Ranil Jayawardena in response to rising public anger over reports of sewage discharges.
To date, the highest fine the agency has given out was £90 million to Southern Water relating to misreporting between 2010 and 2015.
Executive director at the Environment Agency John Leyland said: “These new enforcement powers will be an extra tool in our armoury to hold polluters to account. They will act as a further deterrent – boosting compliance across a range of sectors and helping us provide stronger protection to the environment, communities and nature.”
In a consultation document, the arms-length government body sets out the methodology, which states fines would be proportionate to the size and turnover of a business, and would follow sentencing guidelines.
The guidance would also take into account the level of culpability and environmental impact of any pollution. The Environment Agency said public interest factors such as ability to pay would be considered when calculating a fine.
The agency said regulators will have “a quicker method of enforcement than lengthy and costly criminal prosecutions”.
It said compliance with regulations will be strengthened by having more tools to hold environmental permit holders to greater account. This includes water companies as well energy companies, waste operators and incinerators.
“By lifting the cap on these sanctions, we are simultaneously toughening our enforcement tools and expanding where regulators can use them,” environment minister Rebecca Pow said.
Unlimited fines would only be applied where it is shown beyond reasonable doubt that an offence has occurred.
Any organisation would have the right to appeal such a fine, just as they currently do when given a variable monetary penalty. Currently these are capped at £250,000 but through the legislation change polluters could face much higher fines. The most serious offences would remain subject to criminal rather than civil sanctions through magistrate courts.
The consultation, which runs to 8 October, can be found here.