Water companies could face tougher financial penalties and greater accountability under new government proposals aimed at tackling pollution, sewage discharges and poor environmental performance.

Ministers have announced plans to strengthen the powers of regulators, allowing them to impose larger fines on water firms that repeatedly fail to meet environmental standards. The proposals are also intended to make it easier to hold company executives personally accountable for serious breaches.

The move follows growing public concern over the number of sewage spills into rivers, lakes and coastal waters across England. Environmental groups have long argued that stronger enforcement is needed to improve water quality and ensure companies invest more in ageing infrastructure.

Under the proposals, regulators would be given greater powers to investigate water companies, while firms could be required to publish more detailed information about pollution incidents and their progress in reducing them. The government says the changes are designed to restore public confidence in the industry and protect the country's waterways.

Water companies have acknowledged that more investment is needed to modernise the network but have warned that large-scale upgrades will take time and could increase operating costs. Industry representatives say they are already investing billions of pounds to reduce sewage overflows and improve environmental performance.

The proposals are expected to form part of wider reforms to the water sector, with ministers promising tougher oversight while balancing the need to maintain reliable water supplies and keep customer bills as affordable as possible. A consultation on the measures is expected before any new legislation is introduced.