Severn Trent to 'spend billions' upgrading its network

Severn Trent said the new business plan would help create thousands of jobs

Water company Severn Trent has announced plans to raise £1bn towards transforming its network in the hope of reducing sewage spills and aiding "the natural environment".

The firm said the move was part of a planned £12.5bn spend over the next five years that would create about 7,000 jobs in the Midlands' business and supply chain.

The announcement comes as water firms across the country come under fire for sewage spills, prompting an apology from the industry for its slow response.

Severn Trent chief executive Liv Garfield said the plan meant the company could transform its network by 2030, benefitting customers to whom it had been listening.

Severn Trent has been in the sights of environmental campaigners

The supplier serves about eight million people in homes and businesses in the West Midlands conurbation, Herefordshire, Worcestershire, Shropshire, Staffordshire and Warwickshire, along with Derbyshire, Leicestershire, Nottinghamshire, Northamptonshire, Gloucestershire and Lincolnshire.

Earlier this year, it reported an annual profit before tax and interest of £509m and an 11% boost in turnover to £2.2bn.

On Friday, the firm said it was "maintaining financial resilience" as it announced a pre-emptive equity placing to raise the £1bn.

Of the £12bn overall spend, the company said £5bn of investment would focus on improving capacity and service beyond current levels, with £3bn of that sum going towards aiding the "natural environment".

Severn Trent said the plan would also help it to reduce leakage by 16% and prompt a 30% reduction in spills from storm overflows, putting the firm on track to deliver the government's 2050 industry targets five years early.

Across England during 2022, raw sewage was dumped into rivers and seas 825 times a day on average.

In July, campaigners left a bucket of fake sewage outside Severn Trent's headquarters in Coventry as part of a protest against pollution and leaks.

The company said it had significantly reduced sewage spillages but accepted "as a sector, we recognise that we should have given sewage activations much more attention and acted faster.."

The new business plan is set to be submitted to regulator Ofwat on Monday.

Ms Garfield said: "At the heart of this ambition is a commitment to a sustainable future - from healthier rivers, to providing thousands of jobs, fewer leaks and a water supply ready for the impacts of climate change and population growth.

"At the same time, our £550m affordability scheme aims to ensure no customer in our region needs to worry about affording their water bill."