Water companies must demonstrate they are committed to ending sewage discharges into rivers in order to receive money from a state-owned development bank, MPs have heard.

The Government accepted an amendment tabled by local Lib Dem MP Richard Foord requiring water companies to have a costed, time-limited plan showing their plans to prevent discharges before they can receive investment from the UK Infrastructure Bank (UKIB).

The Liberal Democrats hailed the Government’s decision to accept their amendment as a ‘victory for millions of people’ across the country.

The UKIB has been set up to invest in infrastructure projects using public and private cash. It has two main goals of helping to tackle climate change and support regional and local economic growth.

It was created to replace the European Investment Bank (EIB) following Brexit.

The UK Infrastructure Bank Bill would put UKIB, currently operating on an interim basis, on a statutory footing and clarify its powers to lend to local government.

Treasury minister Andrew Griffith initially argued that the Government is taking action to improve water quality and to stop sewage being pumped into waterways.

But he went on to say the Government would accept the Liberal Democrat amendment, telling MPs it ‘sits already within the actions we are taking and the commitments that we’ve made’.

What Richard Foord said about the amendment

 

Mr Foord, MP for Tiverton and Honiton, earlier told the Commons: “The infrastructure bank should not be committed to release funds for the purpose of improving our sewage system until such a time as there are plans by water companies for a complete restoration of our sewage system.”

 

In a statement released after his amendment was accepted he said: “This is a victory for millions of people across the country who have voiced their outrage at water companies being allowed to get away with polluting rivers and coastlines.

“The Liberal Democrats have been their voice on this environmental scandal and we will continue to champion their cause.

“My amendment ensures water companies won’t receive a blank cheque with taxpayers’ money whilst they pollute our rivers and damage local wildlife. It would have been scandalous for taxpayers’ money to be thrown at firms who pay their execs multimillion-pound bonuses, all whilst destroying our environment.

“However, there is still a long way to go.”