It is the second FTSE100 and fifth FTSE250 business to certify.

As part of the Fair Tax Mark accreditation process, United Utilities has made some reporting changes in order to meet the requirements of the independent certification scheme and improved the tax notes in its financial statements. This has been supplemented with a detailed tax report that sets out clearlywhat tax it pays and why, both in the UK and abroad. The company has also enhanced its tax policy, and begun confirming annual compliance.

The utility company joins a growing list of organisations that have achieved the Fair Tax Mark, including fellow FTSE 100 company SSE, as well as high-street names like The Co-op, Richer Sounds, Timpson Group and Lush.

Paul Monaghan, Fair Tax Mark chief executive, said: ‘Far too often tax is presented as a burden, rather than an essential component that helps glue our society together. Having a fair approach to tax recognises the vital contribution tax makes towards the shared public services we all rely on, from the NHS to schools and policing; as well as ensuring a level playing field for business.

‘It is estimated that annually, due to corporate profits being shifted to tax havens, corporate tax revenue losses in the UK amount to at least £7bn. Just think of the nurses, doctors and teachers we could employ, or the renewable energy infrastructure we could build if that tax was paid as it should be.’

Warrington-based United Utilities is the North West’s water company, providing water and wastewater services to 3m homes and 200,000 businesses across the region.  It has a workforce of more than 5,000 and a major, multi-billion pound investment programme.

Russ Houlden, chief financial officer, United Utilities, said: ‘Each year United Utilities contributes around £240m to public finances and we are fully committed to paying our fair share of tax and acting in an open and transparent manner in relation to our tax affairs.

‘We are constantly looking at ways to further improve the communication and transparency of our approach to tax and we are very pleased to receive this independent certification from the Fair Tax Mark.’

Earlier this month the Fair Tax Mark released polling data that showed heightened levels of concern among the public about the use of tax avoidance practices by business in the UK.

Over three quarters of people responded that they would rather shop with (77%) or work for (78%) a business that can prove it is paying its fair share of tax – in both cases, up eight percentage points on 2018.

An increasing number also said that it was important to celebrate businesses who can demonstrate good tax conduct and shun the artificial use of tax havens and contrived tax avoidance practices, up six percentage points on 2018, to 75%.

The Fair Tax Mark certification scheme was launched in February 2014 and seeks to encourage and recognise organisations that pay the right amount of corporation tax at the right time and in the right place. More than fifty businesses have now been certified, including FTSE-listed plcs, co-operatives, social enterprises and large private business – which between them have income of £50bn and over 6,500 offices and outlets.

Pat Sweet | 26-07-2019