Stuart Anderson MP in Bid to Secure Water Restoration Funding
Stuart Anderson MP has relaunched his bid to secure continued government funding for water restoration projects. It has emerged that Ministers are minded to use funding collected from fines on water companies for "unrelated purposes".
The Water Restoration Fund was launched in April 2024, with £11 million available on a competitive basis to accelerate or support projects that improve biodiversity and widen community access to blue and green spaces where water companies have been issued with fines or penalties.
Under the previous government, the Water Restoration Fund ring-fenced money from environmental fines and penalties collected from water companies between April 2022 and October 2023 to help local groups directly improve the quality of local water environments.
The Fund was established after the previous government legislated to introduce unlimited penalties on water companies that breach environmental permits and expanded the range of offences to which penalties could be applied.
Following the General Election, Stuart raised concerns about the status of the Fund. He requested clarity from Ministers, after Ofwat proposed to levy further fines worth £168 million on three water companies (Thames, Yorkshire, and Northumbrian).
In a response to Stuart issued on 3rd October, the Minister for Water and Flooding Emma Hardy MP said: "The application window for the Water Restoration Fund closed on 7 June and we are currently reviewing applications and grants will be issued in due course."
The Minister added: "The continued reinvestment of water company fines and penalties back into the environment will be decided in the upcoming spending review."
On the proposed fines, the Minister also said they are: "Ofwat will consult on actions and the possibility of voluntary undertakings by the companies to rectify the problems."
In a statement published on 17th January, the Minister stated: "Defra is continuing to work with His Majesty’s Treasury regarding continued reinvestment of the water company fines and penalties on water environment improvement.”
Although the consultations closed in September, uncertainty continues to surround the Fund. This includes the fines already collected, which communities were expecting to receive in July.
Uncertainty regarding the status of the Fund has also been mentioned in recent media reports featuring groups that had applied for funding. It has also been raised with Stuart directly.
Stuart has now said the government must continue the Fund, as it gives real meaning to the polluter-pays principle. This is the idea that the costs of pollution should be borne by those causing it, not those who suffer the effects of environmental damage.
Stuart Anderson MP said:
"Companies that pollute our waterways must pay for their restoration through fines levied on them. This objective, the 'Polluter-Pays Principle' was given real meaning by the last government when it set up the £11 million Water Restoration Fund. It aims to help local groups improve the quality of our water environments by ring-fencing funds from fines. Reports that the new government is looking to abandon this Fund are shocking. This is especially the case, given Ministers had previously assured me that grants would be issued. I have now called on them to proceed with allocations and ring-fence future funding for vital water restoration projects."
