Lib Dems Are On Labour's Case To Make Water Companies Not-For-Profit Community Projects

Former Liberal Democrat leader Tim Farron has urged Labour to “borrow” Lib Dem ideas on reforming water utility companies if Keir Starmer's party gets into government, including turning some businesses into not-for-profit, community run schemes.

Government has been under pressure to tackle the sewage pollution crisis that continues to grip UK rivers and lakes, while water companies continue to make large profits. 

Last year, the Lib Dems accused water companies of failing to publish the volume and litres of sewage discharged into rivers, lakes and coastlines. In December, a BBC Panorama investigation reported that north-west water firm United Utilities misreported its sewage pollution, with bosses receiving a £5m bonus for meeting environmental targets.

Labour Party analysis has found that nine water chief executives were paid £25m in bonuses, incentives and benefits since the last general election in 2019, and water companies in England are currently looking to hike customers' bills by up to an extra £156 a year to invest in improving infrastructure.

As the MP for Westmorland and Lonsdale in the Lake District and as Liberal Democrat Spokesperson for Environment, Food and Rural Affairs, Farron has been particularly vocal on this issue. He has proposed that all water companies should be turned into community benefit companies: organisations that operate on a not-for-profit basis with the purpose of benefiting the community as a whole.

“The government realises that there is a huge issue, but doesn't seem to have it in themselves to really square up to the water companies in any meaningful way,” he told PoliticsHome.

Farron, who was leader of the Lib Dems between 2015 and 2017, said there was a general “injustice” where the