MP votes to block water firms receiving tax cuts unless they stop sewage discharges

In the House of Commons this week, Cumbrian MP Tim Farron voted in favour of a Liberal Democrat amendment to block disgraced water firms receiving a tax cut.

The Government’s Finance Bill allows water firms to fully expense the costs of investment in equipment, handing them a large corporate tax cut.

The Liberal Democrats’ amendment would block these tax cuts for the water industry, unless the equipment was specifically for ending sewage dumps in rivers, lakes and coastlines. The amendment also specifies the tax cuts cannot be given to water firms unless they produce a full time-limited plan for dealing with the sewage scandal.

House of Commons Library research commissioned by the Liberal Democrats found the water industry benefited from almost £100 million in tax rebates last year.

However the amendment was voted down by Conservative MPs.

Tim said: “The Conservative Government are handing water firms a stinking big tax cut.

“The same disgraced industry which causes environmental destruction is now set to receive a great fat cheque from the Treasury. This is a national scandal.

“Water firms are polluting our rivers, lakes and coastlines, all whilst stuffing their pockets with eye-watering bonuses and salaries.

“Conservative MPs had the chance to stop this but once again they decided to take the side of polluting water firms rather than stand up for our precious waterways.”