Treasury Blocks Sewage Dividend Ban After Water CEO Outcry

  • Exchequer Secretary to the Treasury wrote to industry Tuesday
  • Environment Secretary floated plan for further cash lock up

Steve Barclay

Photographer: Hollie Adams/Bloomberg
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The UK Treasury has blocked plans proposed by Environment Secretary Steve Barclay to extend a crackdown on water company dividends.

Barclay told executives at a meeting last month that significant sewage discharges may be punished with bans on investor payouts and bonuses. That raised concerns among company officials who said such action would deter investment or make it punitively expensive.