Water (Special Measures) Act 2025: Enforcement
Debate between Gideon Amos and Tom Gordon(1 week, 6 days ago)
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Gideon Amos (Taunton and Wellington) (LD)
It is a pleasure to serve under you in the Chair, Dr Allin-Khan. I congratulate my hon. Friend the Member for Harrogate and Knaresborough (Tom Gordon) on bringing to the Chamber an issue that has sparked vivid examples of the complete and abject failure of our privatised water companies. I welcome this debate, although the news that it brings is very disappointing, is it not? Our rivers are, of course, precious. The Tone runs through and unites almost all parts of Taunton and Wellington. It is a lifeline for biodiversity, for families and countryside lovers and for the whole natural world. When rivers are healthy, our communities and our nature flourish, but when they are polluted, we all suffer.
That is why the recent revelations about Wessex Water are infuriating. Just a few weeks ago, we learned that the company’s former chief executive officer, Colin Skellett, received a £170,000 bonus from the Malaysian parent company, YTL Utilities. Despite a Government ban on bonuses, the current CEO and chief financial officer received £50,000 in additional payments through the same route. Those payments came after Wessex Water’s criminal conviction in November 2024 for pollution that killed more than 2,000 fish, and after the company was fined £11 million for additional sewage failures. That is all in the context of the £4.25 billion paid out by Wessex Water to private shareholders since privatisation. I cannot think of a more graphic failure of the Conservatives’ privatisation programme. Imagine if that £4 billion had been invested in our rivers and infrastructure over that time. That is exactly the kind of behaviour that the Water (Special Measures) Act 2025 was meant to prevent, but companies are getting around it by using parent company fee payments, fee payments generally and complex corporate structures to circumvent the rules.
In Committee, my hon. Friend the Member for Westmorland and Lonsdale (Tim Farron) warned that that would happen and pushed for a stronger regulator. We called for Ofwat to be scrapped and replaced with a regulator with real teeth. We also called for a new ownership model for water companies, for the public to be brought in through public interest companies, and for mutual ownership so that customers have a stake in the ownership and profits are reinvested in the company rather than going to private shareholders on the other side of the world. Many bill payers in the Wessex Water area would be surprised to find that that is where the money they pay ultimately ends up.
The fundamental problem is that while executives are exploiting loopholes to line their pockets, rivers are getting worse and dying. Customers are paying through higher bills, and communities are watching their local rivers fill with sewage. I checked just before coming to the debate, and north of Bradford-on-Tone and in Heron Gate and Lower Henlade in my constituency, sewage works are pumping sewage into the River Tone right now. Water company bosses should not be rewarded for that kind of behaviour through whatever corporate sleight of hand they are attempting to use. That is as real in my constituency as it is anywhere else.
As so often happens, volunteers have come to the fore. They banded together, and the Friends of French Weir Park and I applied for and got bathing water status to try to improve the water quality of the river, but we need investment.
Tom Gordon
My hon. Friend highlights the involvement of the fantastic community groups that have had to pick up the pieces of this broken system. Does he agree that, in an ideal world, we would not need organisations such as the Nidd Action Group in my constituency, even though the work they do is fantastic?
Gideon Amos
That is absolutely right. Water companies should be run in the interest of the public, not of the private shareholders’ pockets. That would be a welcome reform for communities in Taunton and Wellington and, no doubt, across the country.
In Taunton and Wellington, Wessex Water needs to reform and put this right. I welcome the action it is beginning to take, but we need real investment in the River Tone to improve bathing water quality, and water quality generally. Our sewage works must get the investment that they need. The Government must close the loopholes whereby bonuses are paid in all but name, and we need to ban the parent company payments that circumvent those rules. We need to strengthen enforcement powers, give regulators teeth and hold companies accountable so that communities such as mine can have confidence that the water they pay for comes from a company that is set up and run in the interest of the public, not private profit.
Hospitality Sector
Debate between Gideon Amos and Tom Gordon(4 months, 4 weeks ago)
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Gideon Amos (Taunton and Wellington) (LD)
The pubs, restaurants, cafés and hotels in our hospitality sector are not just places to eat and drink; they are the heart of our communities. They provide jobs, keep our high streets alive and make our communities better and stronger, but many of them tell me that they feel abandoned as a result of the Government policies that we are discussing.
Across the country, an average of 30 pubs close their doors every week. In Taunton and Wellington, Shane Fisher, who runs the lovely Allerford Inn at Norton Fitzwarren, has recently taken on the Racehorse Inn in Taunton town centre. He describes policy effects that are simply unsustainable. The business rates that he pays are now greater than his lease—than the cost of the building. Business rates at that level simply cannot be right.
The Castle hotel in Taunton, an iconic landmark that has been a hotel since 1786 and has famously been run by the Chapman family since 1950, faces similar challenges. In 2024-25, it paid £21,000 in business rates; the very next year, it is being asked to pay well over double: £52,000. That is an increase of £30,000. When that is combined with the damaging increase in national insurance last year and other cost increases, upwards of £200,000 has been added to its costs in a single year. The Little Wine Shop in Taunton’s great independent quarter told me that this kind of increase in costs, coupled with VAT, is killing the industry. I hope the Minister agrees that these increases are simply unsustainable for small family businesses. As a result, all these kinds of businesses are in survival mode.
Hospitality businesses need support, not just through fair taxes, but by seeing the benefit of their taxes being invested in public services, such as policing. That is why I am delighted that our Liberal Democrat town council in Taunton is introducing street marshals, who will provide reassurance, safety and support to people in the town centre. I welcome the Government’s 10 extra police officers in Taunton and west Somerset. We have campaigned to restore proper community policing, which reassures people. Visible patrols are essential for the confidence of traders and customers alike. Too often, Government treat policing purely as a cost, and fail to see its economic benefits. Lifting town centre businesses by providing safe environments that attract customers is hugely valuable. Nowhere is that more true than for hospitality, and I encourage the Government to go further on that.
The Government’s business rates hit hardest the bricks-and-mortar businesses that make up our town centres. On top of that, there is the rise in national insurance, which is nothing more than a tax on jobs. The burden falls most heavily on businesses and sectors like hospitality, which have a large proportion of part-time workers.
Tom Gordon (Harrogate and Knaresborough) (LD)
I recently visited the General Tarleton in Ferrensby, which has just reopened. A fantastic group of people have created the Jeopardy Hospitality project, which reopens pubs that have closed down; those involved include the celebrity chef Tommy Banks and Matt Lockwood. Pubs are the heart of the community. Does my hon. Friend agree that people who take these risks and try to put the heart back in our communities deserve help, not a clobbering from this Government?
Gideon Amos
I completely agree with my hon. Friend, and look forward to visiting them with him when I am next in his constituency.
Hospitality is not asking for special treatment. Rather, it is asking for fairness, a level playing field and the chance to compete, invest and thrive without being penalised by the tax system. That is why Liberal Democrats have long called for business rates to be scrapped and replaced with a fairer system, one that shifts the burden from the tenants to the landowners, and it is why we opposed the rise in national insurance contributions, which squeezes small firms and workers alike. The Government need to listen to the hoteliers, publicans and restaurateurs in towns such as Taunton and Wellington, because unless things change, more doors will close, more jobs will go, and communities across the country will be poorer for it.
Oral Answers to Questions
Debate between Gideon Amos and Tom Gordon(1 year ago)
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Tom Gordon (Harrogate and Knaresborough) (LD)
Gideon Amos (Taunton and Wellington) (LD)