The Liberal Democrats have claimed that the profits of water companies have nearly doubled since 2019. Firms in England and Wales allegedly earned £4.2bn during the current Parliament term.
Analysis of Companies House records by the party showed that English water companies made a profit of £1.7bn in 2022/2023, an 82% increase since 2018/2019.
Yorkshire Water reportedly made the highest profit last year at £723m, the largest since 2018/2019, according to the Lib Dems.
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However, Yorkshire Water has disputed this figure, stating it is "not an accurate reflection" of its performance and claiming a loss for 2022/2023.
During the Lib Dem spring conference this week, the party will unveil plans for a sewage tax and a new group of "local environmental reporters". These proposals aim to assist in cleaning up the country's waterways.
They intend to introduce an additional 16% charge on top of corporate tax for water companies. The funds raised could sponsor journalists in a similar scheme to the BBC's local democracy reporter network.
With a general election anticipated next year, the Lib Dems are focusing on the issue of sewage to win support in traditional Tory constituencies in southern England's "blue-wall" areas.
In addition to this, they are calling for individuals who have fallen sick from swimming in polluted waters to be compensated and propose a complete ban on bonuses for water company executives.
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Ahead of the spring conference, party leader Sir Ed Davey commented: "These eye-watering profits are a national scandal. Whilst our rivers, lakes and coastlines get destroyed by raw sewage, these polluting firms are laughing all the way to the bank. Frankly, the whole thing stinks."
He also added, "This is concrete proof that under the Conservatives, water firms have prospered and got away with environmental vandalism."
On the other hand, a spokesperson for Yorkshire Water explained: "Profit before tax is not an accurate reflection of our business performance in 2022/23 as it included unrealised fair value movements relating to our financing. Adjusting for these movements, Yorkshire Water made a loss."
They further stated, "We invested over £530m in infrastructure projects in 2022/23 to improve our clean and wastewater networks while delivering the best value for customers."
The spokesperson also mentioned, "In addition to this, we have not paid any dividends to external stakeholders for seven years and are not intending to do so in the near future."