Earl Russell
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Lord Forbes of Newcastle (Lab)
My Lords, I seek to make a brief contribution to the discussion on this amendment. Noble Lords might ask themselves why somebody whose political experience was predominantly in a metropolitan area would seek to speak on rural issues, but I grew up in Weardale, in County Durham, and my mother still lives in the dale. From growing up there and from contemporary experiences, I know that the issue of rural crime is felt very keenly by communities in rural areas and can damage the fabric of those communities in a way that makes them feel further under threat.
To the list of examples of crime given by the noble Baroness who spoke just a few moments ago I can add the stealing of oil from fuel tanks, the stealing of logs from log stores, and drink-driving, which we know is more prevalent in rural areas than it is in urban areas. That is why I particularly welcome the Government’s commitment to reviewing and reducing the drink-driving limits for the whole country.
In the context of this amendment, we need to reflect on why some of these issues occur in rural areas and what the root causes of the lack of response may be. Many rural communities have a greater sense of trust and of community spirit, but that can have a downside, in that it can make people more susceptible to fraud and more liable to be scammed, particularly online. Alongside the amendments under consideration, I welcome the measures to introduce stronger investigatory powers and a stronger national approach to such crimes. Although crime can affect people anywhere, for those living in rural or isolated areas without support around it can be quite devastating.
There is a challenge around the whole-scale withdrawal of police stations and a police presence from many of our rural communities. That has resulted in one particular case that I am aware of, because it affected my mother. She was subject to the theft of some logs from land that she owns. The police response in that area was, “We suggest you go out and buy some cameras from Amazon to see if you can record this”. I do not think that that is sufficient, appropriate or suitable in the circumstances. It implies that a small-scale crime such as that is of no grand consequence, but to somebody like my mother, it has a very real consequence, because it has affected her fuel supply over the winter period.
There is an issue about the particular nature of crimes that are more prevalent in rural areas. As we come to Report, I hope we can look more fully at ways in which the Government can work alongside police and crime commissioners, while they are still in existence, and whatever their successor bodies are, to ensure that rural areas do not feel second best when it comes to crime prevention and community safety.
Earl Russell (LD)
My Lords, I will speak in support of the amendment in the name of my noble friend Lady Miller, to which I have added my name. I thank the noble Lord, Lord Cromwell, for his support, and those who have spoken already.
The amendment addresses an issue that has for too long been treated as peripheral: the growing crisis of rural crime. For those who live and work in our countryside, there is the reality of financial loss, fear, and a deep sense of vulnerability and isolation. After rising to around £52.8 million in 2023, the estimated cost of rural crime stood at around £44 million in 2024. Despite some improvements, the resources devoted to addressing this remain inadequate. Freedom of information requests from my party submitted last April uncovered the shocking fact that only 0.4% of the police workforce across England and Wales is dedicated to rural crime teams. In Norfolk, for example, there are just two dedicated full-time officers, and some forces have no rural crime forces at all.
Earl Russell
“Offence of failing to meet pollution performance commitment levels (1) A water or water and sewerage company (“C”) commits an offence where C has—(a) failed to meet its pollution performance commitment level for three consecutive years, or(b) experienced an increase in serious pollution levels for three consecutive years. (2) For the purposes of this section—(a) “water or water and sewerage company” means companies which are responsible for the provision of water, or water and sewerage, services and which are regulated by Ofwat and the Environment Agency,(b) “pollution performance commitment level” means the level of performance on pollution that the company has committed to deliver, and which is reported against by Ofwat in its annual water company performance report, and(c) “total pollution incidents per 10,000km2” and “serious pollution incidents” mean the relevant figures under those headings reported by the Environment Agency in its annual environmental performance report.(3) If guilty of an offence under this section, C is liable—(a) on summary conviction, to a fine;(b) on conviction on indictment, to a fine.”Member’s explanatory statement
This new clause creates an offence of failing to meet pollution performance commitment levels.
Earl Russell (LD)
My Lords, in moving Amendment 484 on behalf of my noble friend Lady Bakewell, who is unable to be here, I shall also speak to Amendment 485 in this group on pollution. I thank the noble Baroness, Lady Jones, for her support for both. The amendments address the critical, environmental and public trust issue of the persistent and systematic failure of water companies to stem the flow of pollution into our rivers, lakes and coastal waters. The amendments are designed to work in tandem as a linked pair of provisions specifically targeting persistent and sustained underperformance. They are not designed to punish one-off incidents. They are a measured response to prolonged and sustained regulatory failures that, in the public’s eye, have become a matter of criminal neglect.
Amendment 484 would insert a new clause into the regulatory framework, creating a clear corporate criminal offence for a water or sewage company. That offence would be triggered when a company already regulated by Ofwat or the Environment Agency either fails to meet its pollution performance commitment level for three consecutive years or experiences an increase in serious pollution levels for three consecutive years. The pollution performance commitment level used is the exact target that companies commit to under the existing regulatory framework, which Ofwat reports on annually. The data regarding serious pollution incidents is similarly drawn directly from the Environment Agency’s annual environmental performance data.
A three-year threshold is a deliberate and calibrated response. We recognise that water companies can face individual problems from climate change, weather events, rapid population growth and other unforeseen circumstances. However, when failures persist year after year, are reported in black and white in regulatory reports but nothing is done, that is a different matter. By setting this three-year window, we would offer companies ample opportunity to correct their course. If they failed to do so, as a result of this amendment it could result in the matters being criminal.
Amendment 485 would build directly upon this foundation by creating personal criminal liability for senior managers. Liability would arise where a corporate offence under Amendment 484 was committed and the individual had failed to take all reasonable steps to prevent it. We have adopted a functional or a robust definition of senior manager, mirroring successful legal models in health and safety and economic crime already in legislation. It would apply to anyone who plays a significant role in making decisions about how the company’s relevant activities are managed or organised. This ensures that no one could evade their responsibility through misleading job titles or a corporate web of complex structures.
Critically, this amendment includes built-in protections to ensure fairness. The core requirement is to “take all reasonable steps”. A manager who could demonstrate that they have done this would have a clear path to acquittal. This structure would pierce the corporate veil without being reckless. Decisions regarding budgets and infrastructure carry personal weight for those who operate at the top.
Although there has been change, there is a lot that still needs to be done. Bill payers are facing a 26% increase in their bills and, in 2025 alone, supply interruptions across England and Wales rose by 8%. Even more concerning is the 60% increase in serious category 1 and category 2 incidents, which climbed to 75 in 2024. I recognise that we have had the Water (Special Measures) Act, the Cunliffe review and the recent White Paper and that there is more legislation to come. We welcome a lot of the measures, particularly those in the White Paper. Regulators have also imposed record fines, some as high as £90 million, but we must confront the reality that we may have reached the limits of a solely fines-based model.
When penalties are too modest, they just become the cost of doing business; when they are too punitive, they risk bringing down the very water companies that we are trying to sanction. Despite these fines, executives continue to draw substantial bonuses. Shareholders continue to receive massive dividends, while the environment bears the scars. The public is being asked to fund a staggering £104 billion in the promised AMP8 investment, and much of it is publicly underwritten through government schemes. We must have a statutory mechanism that ensures that this money delivers verifiable environmental gains rather than just being siphoned into higher gearing and profits.
Some critics may argue that these amendments will deter talent and overburden regulators. I disagree. These provisions are carefully calibrated to protect those who work in this industry, and they could do exactly the opposite. They could attract into the industry those people we need who are motivated to make change. Having that protection of the “reasonable steps” defence could help to attract the very talent we need. These measures are in line with requirements of the Environment Act that the polluter must pay. For too long this has not happened, and individual poor performance has been allowed to pass unchallenged.
These amendments provide the precise tools needed to bridge the gap between reporting failure and enforced change. Persistent pollution is not a technical glitch or an oversight; it is a substantial betrayal of public trust and an environmental duty. These issues need more thought than I have seen to date from the Government, despite the legislation coming forward.
The new water regulator, when established, must have the necessary tools to hold individual companies and individual corporate members within them to account personally for any serious and persistent failings; otherwise, it will not succeed, just as other regulators have not. I hope that the Government will view these amendments as a timely enhancement to their own thinking and plans for further reform. I beg to move.
Baroness Jones of Moulsecoomb (GP)
I love these amendments and wish I had tabled them myself. They are excellent. Water companies dumping sewage into rivers has been illegal for years: it is just this and the previous Government’s refusal to act that has let it continue without serious consequences.
The legislation allows Ministers to set a bar of what is acceptable behaviour and, so far, every politician in charge has refused to say what is and is not a major failure. The result of this political cowardice is that water companies continue to make a profit out of polluting our waterways and beaches, and the people in charge continue to collect their big pay cheques and bonuses.
Regulators such as Ofwat have been in bed with the water industry bosses, and the Environment Agency has lost staff and legitimacy. Labour are wedded to private ownership of water and refuse to consider public ownership, even though it would be the most popular legislation they could enact this Parliament. I keep making suggestions about how Labour can get some voters back, but it is not listening.
These companies are fleecing bill payers with the excuse that they need to carry out the investment they have failed to do for decades. They have taken the public’s money and given it directly to shareholders. They have run up debts to pay even higher dividends and the bill payers are now paying for those debts. What is going to stop them doing this all again?
These amendments take a direct route to stopping pollution by making this personal to the people at the top. If they do not spend the money to invest and reduce pollution, then that is a crime. They are taking the public’s money and failing to improve. My own preference would be to put them on long-term community service cleaning up the sewage from our beaches, waterways and riverbanks. I would probably put them in special uniforms so that everybody passing by would know exactly who they are. I would also put a complete ban on dividend and bonus payments.
I am happy—she says, through gritted teeth—to support this more moderate suggestion, as being something the Minister might accept. I would not give them three years to turn it around either, but setting some sort of firm deadline would be preferable to the inaction of this, and the last, Government.
Finally, the best way of stopping the crime of water companies dumping sewage in our rivers is to take them into public ownership. Reduce bills by reducing the money wasted on debt repayments and replace the current set of overpaid bosses with people who can do the job and care about our environment.
Earl Russell (LD)
My Lords, I thank everybody who has spoken. That was a more interesting group of amendments than I expected it to be. I apologise—at the start I should have declared my interest as a board member and director of the Water Retail Company.
This has been an interesting debate. My amendment was not really about the ownership or privatisation of water—my party has a middle way on that—but about ensuring that the Government have the tools to change the behaviour and direction of water company executives. I take the Minister’s point about the £140 billion, but a lot of that is underwritten. We need that to be invested to get the change. I recognise the issues of climate change and the problems that we face, but this amendment is carefully crafted and is about adding this extra tool to the toolbox.
Fundamentally, my worry is that when we create the new regulator, which I welcome, it needs to be set up to succeed and to deliver—when, frankly, no other regulator has to date delivered in this space. My worry is that fines alone may not be enough to change corporate behaviour. I do not want to come back in another five or 10 years, when the climate has moved on and the problems we face are worse, and see that more money has gone in but the systems have not changed. However, I beg leave to withdraw my amendment, and I thank all those who have spoken.