(9 months, 2 weeks ago)
Commons ChamberThe hon. Gentleman will have noted what I said about wanting to tighten up the bonuses paid not only to chief executives but to executive board members. Earlier this year, the Government announced tighter measures, relating specifically to environmental performance, for Ofwat to be able to challenge dividends.
Last year, to tackle storm overflow discharges, we updated our storm overflow discharge reduction plan, which sets stringent targets to reduce storm overflows. It prioritises action on overflows that discharge into ecologically sensitive sites such as SSSIs, areas of outstanding natural beauty and bathing waters. It will also drive water companies to deliver their largest ever infrastructure programme, an incredible £60 billion over the next 25 years. We are already seeing many water companies accelerating their investment in increasing the assets they oversee.
Moreover, I am aware that there are three designated bathing waters on the County Durham coastline in the hon. Gentleman’s constituency: Seaham Hall, Seaham beach and Crimdon. Substantial improvements have been made to English bathing waters in recent years. Almost 90% of designated bathing waters in England met the highest standards—good or excellent—in 2023, up from 76% in 2010, and that is despite stricter standards being introduced in 2015. These bathing waters are routinely monitored by the Environment Agency during the official bathing water season from May to September.
In 2023, two of the bathing water sites in the hon. Gentleman’s constituency were classified as good, and all met the minimum standard of sufficient. However, I recognise that two had deteriorated from the previous year’s classification. The Environment Agency will investigate the reasons for that deterioration in the region’s bathing water.
We are working closely with Ofwat and the Environment Agency to ensure that they have the tools and resources they need to hold water companies to account. We have provided an extra £2.2 million a year to the Environment Agency specifically for water company enforcement activity. Furthermore, in May 2023 Ofwat announced that its enforcement capacity will be trebled following the Government’s approval of an £11.3 million budget increase.
We have legislated to introduce unlimited penalties for water companies that breach their environmental permits, and to expand the range of offences to which those penalties can be applied. For the avoidance of doubt, this includes criminal.
In our “Plan for Water” we announced the water restoration fund, which will channel environmental fines and penalties collected from the water companies into projects that improve water environment. Further details of the water restoration fund will be announced.
This Government are going further and faster than any Government to protect and enhance the health of our rivers and seas. We expect water companies, including Northumbrian Water, to use the next five-year price review period, PR24, to set bold and ambitious plans to deliver for the people and the environment. That means security of supply, cleaner rivers and beaches, fewer leaks, fewer supply interruptions, greater water resilience—so that we see a fit future for our rivers and coastal environment—and substantial improvements to tackle storm overflows. In turn, this investment will boost economic growth and create more jobs.
On a point of order, Madam Deputy Speaker.