Latest news with #waterindustry
Telegraph
17 hours ago
- Business
- Telegraph
The great British public keeps being forced to bail out our incompetent political class
To the surprise of nobody, our water industry has been found wanting. An ineffective regulator allowed self-serving companies to enrich shareholders and directors at the expense of the public interest for decades. Instead of investing in our creaking Victorian infrastructure, water companies were saddled with debt by their private owners to pay out dividends. Billions of pounds were funnelled from Thames Water alone, funded largely through then-owner, Macquarie, which more than tripled the utility provider's debt burden to £10.8bn in just 11 years. Most recently, the firm paid 21 senior staff £2.5m in bonuses in April as a reward for taking on an eye-watering loan, partly to plug the gaps of said wealth extraction. Thames Water is not alone in this. Over the past decade, more than £112m has been paid in bonuses to senior staff at water utility firms, despite their consistent failures as either public good or private enterprise. These businesses dumped raw sewage into the nation's waterways for 3.6 million hours in 2024 because their ancient systems, left unimproved for decades, are overwhelmed by modern requirements. But of course it is we, the British public, who are being charged for cleaning up someone else's mess yet again. The eternal mugs, and doormats for the incompetent, we will be saddled with a hefty increase in our water bills to fund the ever-worsening services we enjoy. Don't forget, this comes on the back of a roughly 30-50pc rise three months ago, depending on your provider. But we can't be surprised they've taken us for fools again. This is just the latest kick in the teeth in a dense history of tooth-kicking. If there's one thing the British public can rely upon, it's paying for the privilege of decline. Draw an infrastructure project out of the hat, and you'll find a spiralling bill and a bumbling bunch of executives soon to be called in front of a committee hearing explaining why there's no sign of what was promised – and why they couldn't possibly return their fee. Promised to open in 2026 for a cost of £31bn, HS2 was set to connect London to Birmingham, Manchester and Leeds on high speed rail. Now, it will open no earlier than 2036 for a cost of more than £100bn, and will only run from London to Birmingham. If we're lucky. For more than triple the cost, we're set for a third of the railway to be delivered in double the time. And who'll be footing the bill? You guessed it. Even on our current tracks, we're being taken for a ride. Rail fares rose yet again this year, but only 68pc of services depart on time. We're finally set for a new nuclear power plant a decade from now in the form of Sizewell C at a bargain cost of just £38bn. Excellent news, but nobody mention the fact it was supposed to be operational by now for a total cost of £20bn. Don't forget our crumbling services. Councils continue to raise taxes while they shift our bin collections to once every three weeks. Yes, the burden of funding care costs leaves a large dent in local authority finances, but pouring £665m into an (alleged) sham can't help. It's not just the failed investments and obscene borrowing that our local councillors are learning from the water sector. They also enjoy golden parachutes for bankrupting their organisations, and saddling us with the bill. Not to mention how difficult it is to get a GP appointment (no wonder record numbers now use private healthcare) or an NHS dentist, find a local school or have the police investigate a burglary. At some point, the gravy train of incompetence will come to a juddering halt. Whether that's because we start to hold those responsible to account or simply run out of money to burn in its engines is anybody's guess.
Times
a day ago
- Business
- Times
Times letters: Regulation and funding of water companies
Write to letters@ Sir, I am left unsure what will change in the water industry after the publication of the report by Sir Jon Cunliffe and the response by the government (news, Jul 21 & 22). One regulator is to be replaced by another and water bills will rise by an average of 36 per cent over the next five years, which means that the public will in effect pay a second time for any improvements that should have been made by now, had water companies spent more investing in infrastructure instead of lining executive and shareholder pockets. As to the claim by Steve Reed, the environment secretary, that sewage pollution in England will be halved by 2030, please forgive my TiffenAspatria, Cumbria Sir, Your editorial ('Water Torture', Jul 21) rightly castigates the regulatory system as well as the operating companies. You say that regulatory responsibilities are split between three bodies: Ofwat, the Environment Agency and the Drinking Water Inspectorate. But even this is an understatement. Natural England also has some responsibilities, although how these fit with those of the EA is anyone's guess. And to complete the chaos there is also the Consumer Council for Water, which supposedly exists to look after consumers' interests. A single regulator with appropriate powers will be welcome, even if its creation is more than 30 years GaneLondon SE21 Sir, Feargal Sharkey says corporate greed is at the heart of the water scandal (Jul 22). I disagree: it is the broken tax system that creates the incentive for financial engineering. As long as there is an imbalance between the tax treatment of debt and equity, financiers will continue to load up low-risk enterprises with debt to generate higher returns to their investors, all at the expense of KokinisSheffield Sir, May I dare to express a little sympathy for the water companies? The unfettered concreting over and tarring of front gardens, and seemingly endless acres of further urbanisation and development, have led to flash flooding and the overwhelming of sewage facilities. Local authorities should have separate drainage for surface RennieKintore, Aberdeenshire Sir, The Thames Tideway project to upgrade waste-water treatment systems in London to enable them to cope with storm-water surges was completed in May. It has effectively eliminated the problem of unwanted releases into the Thames. The question now is: when will this technology be introduced in the rest of the UK?Dale FittesChartered engineer, Warwick Sir, If every new house was required to have a large rainwater tank the amount of drinking water needed could be substantially reduced. Rainwater could then be used to flush toilets, wash cars and water FreelandBristol Sir, In 1955, when I was 12, my mother and I had a holiday at Hove and were surprised, while swimming in the sea, to find ourselves surrounded by lavatory paper. Plus ça WillettLondon SW19 Sir, William Hague ('Welfare reform is a moral and financial must', Jul 22) is right that unless we rethink our welfare system we face economic crisis. The tragedy is that this has been staring us in the face since at least the early 2000s. Successive welfare ministers have recognised that but each has put the issue in the 'too difficult' box, to be left for their successor. If we wait for one finally to have the courage to tackle it we will wait another generation. We need to break the mould: we should establish a cross-party royal commission with a remit to report within one year — the issues and the facts are clear so a year will be ample — to recommend the measures that need to be taken to tackle this crisis. Then we should ask all our political parties to have the courage to implement its Leigh LewisPermanent secretary, Department for Work and Pensions 2005-10; Watford Sir, It is inevitable that Rachel Reeves will struggle to persuade Labour MPs to back legislation that has to be considerably tougher than the recent attempts at welfare reform. The solution is to raise income tax by, say, 2 per cent, with the promise of bringing it down again when welfare reforms have improved the government's ScottEast Knoyle, Wilts Sir, I am horrified to admit that I agree with Reform UK about something: in this case the need for more 'big strapping male police officers' (report, Jul 22). The episode that made me agree is as follows. A few years ago I was returning home in my car, through my local town centre, late on a weekday evening. While at a red light I saw a street brawl erupt around me involving about ten adult males. One man was struck and fell to the floor beside my car; his attacker then began to kick his unconscious body. Before too many head kicks were delivered I got out of the car and pushed the assailant away. When threatened I didn't move, so got punched a fair bit. Other passers-by then intervened to break it all up and we called an ambulance for the chap on the floor. When the dust had fully settled, a slight WPC and a male constable no bigger than me (I am 5ft 7in and 63kg) nervously appeared. I was absolutely disgusted. Two 100kg male PCs might have had a calming effect on the mayhem but these two lightweights certainly wouldn't. It is possible that the officers knew this and had kept out of the way until things had settled CoeWinterton, Lincs Sir, Nigel Farage misses the point when he states he wants to recruit 'beefy bobbies' to strike fear into criminals. The police have no need of beefy bobbies — most officers are more than capable of arresting criminals. What they need is a justice system that allows them to do their duty without fear of being accused of racism, Islamophobia and lack of impartiality, and inquiries into alleged wrongdoing that take years to complete. Further, if the courts imposed appropriate sentences (assuming, of course, that the craven CPS allowed prosecution in the first place), this would act as a deterrent to wrongdoing, which is sadly absent at present and is empowering lawlessness. Only a complete overhaul of the justice system will address this imbalance, not bigger MolloyMetropolitan Police 1976-2006; Chart Sutton, Kent Sir, The chief executive of NHS England, Sir Jim Mackey, advocates a 'different approach' to the 'Christmas Day' acute care service provided during previous industrial action by doctors, but offers little detail about how this might be achieved ('Patients at risk during walkouts, warns BMA', Jul 22). How can productivity remain constant when capacity is reduced without increasing pressure in the system past the point of irreversible damage? Without a clear and funded 'surge' plan, Mackey's mandate is no more than SoodSouthend-on-Sea, Essex Sir, The impending loss of the Lord Ashcroft VC and GC collection in the Imperial War Museum is to be regretted (Thunderer, Jul 22). Anyone who has visited the display, the largest of its kind, cannot help but be humbled by the gallantry of those who received these awards. The removal of the collection serves the interests of no one. The museum should be made to justify its irrational Prescott (Lt-Col, ret'd)Southsea, Hants Sir, While awaiting the arrival of the Bayeux Tapestry and after enjoying the impressive replica at Reading Museum (letters, Jul 21 & 22), Times readers should venture west to Fishguard and visit the tapestry commemorating the last invasion of Britain in 1797. It is beautifully and colourfully designed, and was stitched by local people. Moreover, it celebrates an invasion that was BattleLondon SW18 Sir, It seems ridiculous that local councils are still unable to levy a tourism tax on hotel stays ('Tourist tax plan rejected by Treasury', Jul 22). I travel frequently to the US and Europe, where these taxes are accepted as a standard element of any hotel bill. They reflect the tourist's/business visitor's use of local infrastructure (roads and public transport etc) that, without such a tax, becomes solely the responsibility of local taxpayers. Enabling councils to collect a tourism tax, without any of the money going to central government, would not only help to relieve pressure on local government finances but would also help to reduce further demand on government Anthony HarrisCambridge Sir, Libby Purves makes powerful points about the damage done to the starter job opportunities for young people ('Bar, café and retail jobs are society's heartbeat', Jul 21). It brought to mind the contrast my wife and I found on a recent visit to Australia. Shops, restaurants and bars were well staffed by bright, smiling young people who oozed enthusiasm for their role and their customers. Many were young Europeans and clearly motivated by their travel experience, and had been brightly trained by their bosses. Our government, through its policies, is denying our own children the chance to experience life beyond the screen. As Purves implies, the government needs to change R SmithSouthport, Merseyside Sir, Although I admire the creativity of the various top-level chefs in their quest for the perfect mashed potato (report, Jul 22), sometimes simplicity is the best approach. My late mother made the most delicious mash, following the teaching of her own mother. She used old, floury potatoes, gently boiled them until tender then mashed them with a traditional hand-masher. She would add a large knob of butter and a good splash of milk, but the true secret was in the beating: my sister and I competed to beat the mash vigorously with a large tablespoon. The result was CarvellWhitby, N Yorks Sir, Your leader writer is clearly a person of absolute taste ('Brewing Storm', Jul 22). Tea leaves are for brewing: tea bags are for puffy CullenArmagh Sir, Having read James Marriott's excellent comment article (Jul 22) discussing the film Barry Lyndon, I am reminded of another film set in the 18th century: the wonderful 1963 film Tom Jones, with Albert Finley in the title role. The two films couldn't be more different in texture and storytelling but both give a vivid view of life in the middle of that century. I would thoroughly recommend watching both and if stamina permits, one after the GodfreyArborfield Cross, Berks
Telegraph
a day ago
- Politics
- Telegraph
Men aren't the enemy, but I wouldn't want to be one
On Sunday the BBC managed the difficult task of getting the Environment Secretary, his shadow opposite, and the leaders of both Reform UK and the Lib Dems onto Sunday with Laura Kuenssberg, each for a discussion on our water industry. Unfortunately for the programme's producers, the panellists were all male, white, and over the age of 59. And so, with mind-sapping predictability, the identity politics brigade – to which the BBC usually obediently kowtows – went bananas. 'British politics in all its diversity this morning,' sniffed the political editor of The Byline Times, though the country is 81 per cent white and 50 per cent male. It's true that men and women are treated unequally in this country, just not in the way most people think. We approve when females dominate certain industries, run FTSE100 companies, make up the majority of university graduates, yet cry 'sexism' whenever and wherever men are in the lead on some criterion. We have an Equality Act offering a legal get-out card to employers who prefer candidates from 'under-represented' groups. It's why the RAF, NHS and several police forces have all tied themselves in knots explaining why they have prioritised minority recruits. We used to pride ourselves on providing 'equality of opportunity' but now that's not good enough. We have to aim for 'equity' which, purportedly righting the wrongs of the past, permits turning a blind eye to evidence suggesting white males are now often at a marked disadvantage. White British males eligible for free school meals, for instance, are now the lowest performing group at GCSE. They are grossly underrepresented in higher education, with just 13 per cent going to university. And when was the last time you heard about an outreach or access programme focused on this group, rather than ethnic minorities and women? Who will advocate for the white men, in left-behind towns and communities, hit hardest by the decline of manufacturing jobs in the late-20th century? None of these opportunities have returned, whilst others are gradually being cut off: it was reported this week that women in the construction, electrical and plumbing sectors are now 'inundated' with requests from customers who feel safer with them working in their homes. Apparently, there's too much 'inappropriate behaviour from tradesmen' going on. Really? How many clients can honestly say they've been subjected to Gregg Wallace-style misogynistic banter over a faulty cable or leaky pipe? White men have the highest suicide rates in the UK; white working class men are statistically among the least likely to experience upward social mobility. The list goes on and on. But it's not unique to men from any particular ethnic group. If you possess XY chromosomes, you are growing up in a society which will treat you with suspicion, as a predator in the making, whose basic instincts ought to be suppressed. Where you are terrified to approach members of the opposite sex in a social setting, let alone in the workplace, in case you are taken to be an Andrew Tate tribute act. Where traditional masculine qualities – assertiveness, competitiveness, independence, strength – are dismissed as destructive to our society. Where your economic contribution will be downplayed: how many people are aware, for example, that men pay over 70 per cent of all income tax? That they pay back more of their student loans on average (£50,800) than women (£39,200)? How many stop to consider that, Waspis notwithstanding, women's life expectancy means we get the state pension for longer? That men account for the vast majority – 95 per cent – of fatal workplace injuries? Meanwhile feminist groups bemoan the gender pay gap, conveniently forgetting that it is largely a consequence of compensating differentials and free choice. If women opt for part-time roles, remote roles, less demanding roles, why should they expect to be paid in line with male colleagues who are putting in the harder yards? For all the grimness of our medieval maternity wards, I'm glad I'm a woman in modern-day Britain. Most of us do reasonably well. I should confess, however, to having a stake in this debate, as the mother of three young boys. But why should my sons be instructed to 'stand aside' to allow girls to rise up? It's precisely this mentality which leads us to convince ourselves slavery reparations are a solid idea. Boys born today have nothing to atone for, nor will they benefit from the 'patriarchy' of the past. So why should they listen to people like Jerry Levins, the late AOL-Time Warner CEO, who famously proclaimed that 'it's time to replace all men at the top with women'? 'Women are better leaders', he intoned back in 2017 – before the full scale of the Jacinda Ardern or Angela Merkel catastrophes became clear. The evidence is far from definitive. Perhaps it's time for a truce between the sexes. Not least so that we can focus on the areas where women are genuinely disadvantaged, discriminated against or mistreated. The Left appears far more troubled that easyJet pays its male pilots more than its female cabin crew than it does the steady rise in FGM or warnings from charities that forced marriage is on the rise. I'm sorry, but I struggle to see the Kuenssberg panel as such a horrorshow. Laura was in charge, after all.
Bloomberg
2 days ago
- Business
- Bloomberg
Allegra Stratton: Can we Clean up the UK's Great Stink?
If you're anywhere near the Great British seaside right now – as I was at breakfast this morning when a thunderstorm turned the morning sky over the Atlantic a dark inky blue – then the 464-page report out today on the future of the UK's water industry is a mixed bag. There are plenty of good bits — it's positive that Jon Cunliffe's review recommends stricter oversight of water company ownership. The proposed new regulator could get the power to block changes in the running of water companies if they are not seen to be prioritizing the long-term interests of us all.
The Independent
2 days ago
- Business
- The Independent
Ofwat to be scrapped as sewage spills hit record levels
Environment Secretary Steve Reed has confirmed the abolition of water regulator Ofwat as part of a major overhaul of the "broken" water industry. The new system will consolidate water functions from four different regulators into a single, powerful body. Mr Reed criticised water companies for prioritising £85bn in shareholder payouts since privatisation over essential infrastructure investment, leading to record sewage pollution and soaring bills. The changes are based on Sir Jon Cunliffe's report, which also recommended removing regulatory roles from the Environment Agency and Natural England. Sir Jon warned that water bills are projected to rise by almost a third by the end of the decade due to necessary investment in ageing infrastructure.
