Would Labour’s plan to put water bosses in the dock over sewage dumps work?

Labour has vowed to take water firm bosses who are responsible for the illegal dumping of sewage into Britain’s rivers to court if it wins power at the next election.

In an exclusive interview with i, the party’s Shadow Environment Secretary Steve Reed accused water firms of “corruption” for the damage caused to the UK’s waterways and said Labour would go after executives personally with criminal sanctions if they continue to allow “toxic” discharges to pollute the country’s rivers and seas.

But would Labour’s plan to prosecute water company bosses responsible for illegal sewage dumping work? i takes a look at how the policy could play out.

Why is Labour calling on water company bosses to be prosecuted?

Water companies have come under intense scrutiny as the public has become aware of the amount of untreated waste being dumped into Britain’s waterways.

Firms receive permits from regulator the Environment Agency (EA) that allow them to discharge sewage during times of exceptional rainfall, but companies have been found to repeatedly flout the conditions of these permits.

Latest official data shows sewage was released into Britain’s waterways from various points for a collective 2.4 million hours in 2022.

Regulators Ofwat and the EA have been criticised for failing to get a grip of the problem. Last month, i revealed that the EA failed to visit 90 per cent of toxic water spills in England in 2022, including 60 per cent of the most serious incidents.

What penalties do water company bosses face for sewage dumping now?

Water companies, and their bosses, can face criminal charges for dumping sewage outside of their permit conditions, but this rarely happens.

Criminal cases are lengthy and expensive, meaning the EA often relies relies on civil penalties, which do not come with jail time. The Government recently increased the maximum fine that water companies can face in civil cases from £250,000 to £250m.

For the most severe cases, the EA does pursue criminal charges, but these have resulted in fines levied against water companies, not custodial sentences for executives.

The highest fine handed out to a water company in a criminal case was in 2021, when Southern Water was ordered to pay £90m when a court found the firm was responsible for thousands of illegal raw sewage discharges that polluted rivers and coastal water around Kent.

Under English law company directors can be criminally prosecuted for a crime committed by their company if personal liability is established, but this is yet to happen in the case of water company bosses.

How would Labour go about imposing criminal sanctions?

It is currently unclear exactly how Labour will go about ensuring water company bosses are prosecuted for pollution incidents.

One option would be to increase funding for the EA so the watchdog is better resourced to pursue lengthy litigations.

Labour may also wish to introduce a new law specifically aimed at water company bosses, making clear their personal responsibility for sewage dumping.

For example, following the Grenfell Tower fire, the Government introduced the Building Safety Law that defined an “accountable person” for the safety of high rise buildings. The law outlined that this person could face unlimited fines or jail time of up to two years if they neglected their duties.

What do campaigners say?

Campaigners have been calling for water bosses to face harsher penalties if their company is found to illegally discharge sewage.

Responding to Mr Reed remarks to i, campaigner Feargal Sharkey said: “Finally someone is prepared to confront the real source of sewage dumping: water company boardrooms.

“What a perfect way to help focus industry fat cats on their own incompetence, corporate greed and gold-plated bonuses. It should never pay to pollute and it should end now and in prison if necessary.”

It is also an idea that appears to be popular with the public. Last year a survey for i by Redfield & Wilton Strategies found 72 per cent of those polled backed sending individual executives to jail when their firm is found to illegally pollute.

The EA itself has joined the calls for water bosses to face jail time for their company’s actions.