Let Councils Have £122.7 Million Thames Water Fine to Clean Up London’s Rivers Demand City Hall Conservatives

In a letter to the Chancellor of the Exchequer, City Hall Conservatives Environment Spokesman - Thomas Turrell AM - has demanded that the record £122.7 million fine imposed on Thames Water for sewage breaches and shareholder dividend payments last week should remain in London rather than disappearing into Treasury coffers.

The Assembly Member says that “the money must stay in London” and is calling for the penalty to be distributed amongst Greater London's 32 councils and the City of London Corporation, which would provide approximately £3.83 million to each local authority. The money would be specifically for investment in improving water bodies and rivers across the capital.

Prior to his election to the Assembly, Thomas was the Executive Assistant for the Environment on Bromley Council, where he was responsible for the £2 million desilting of Kelsey Park lakes. His intervention comes as many London councils struggle to fund essential river and water body restoration work through increasingly uncertain grant funding arrangements, whilst simultaneously dealing with the ongoing impact of Thames Water's environmental failures on their local communities. At People’s Question Time in December 2024 Thomas spoke about the need for City Hall to support cash-strapped councils in cleaning up and maintaining the capitals vast river network.

Thomas said: 

"Londoners are the ones who have been let down by Thames Water's appalling record on sewage management and environmental protection. Our rivers, our parks, our open spaces all impacted by these failings and the knock on effects, and it is London Council Taxpayers who then get left to pick up the bill. So it is only right that the proceeds from this record fine should be invested back into our capital city to repair the damage done to our precious waterways and rivers.

"At £3.83 million per council, this funding would provide a genuine lifeline for local authorities who are currently having to rely on unsustainable grant funding to carry out vital work protecting and improving our water environment. Rather than this money vanishing into the Treasury's general funds, it should be ring-fenced to directly benefit the Londoners who have borne the brunt of Thames Water's failings."

The proposed distribution would see funds allocated to the 32 local councils and the City of London, for projects specifically focused on water quality improvement, river restoration, and flood prevention measures, providing a stable funding stream for environmental projects that have previously relied on uncertain government grants.

Thames Water was hit with the record penalty following a series of serious environmental breaches, including sewage discharge violations and concerns over dividend payments to shareholders whilst the company faced significant operational challenges.

Councillor Will Rowlands, Executive Member for Environment at Bromley Council has voiced his support the demand, saying:

“I fully support the proposal from Assembly Member Turrell. Keeping the proceeds in London would mean that we can, in a pragmatic fashion, both hold Thames Water to account and ensure they are the ones paying for improvements to water quality. Mismanagement at Thames Water has left many rivers in a poor state and it is not right that taxpayers across Greater London have been left to pick up their tab. The trust is that councils can no longer afford to do these important works themselves. The huge increases in delivering statutory services leaves councils with no money to do important works to our rivers and water bodies, so having Thames Water pay to fix their own failings is the only way to repair our rivers.”