A Welsh council is considering introducing a tax for companies which collect rainwater and energy from Wales and use it elsewhere.
Powys Council has sought permission from the Welsh and UK governments in order to do so, the BBC reports. Birmingham, Liverpool and sometimes Manchester all receive water from reservoirs in Wales.
The Welsh Government said it has invited Powys Council to discuss the proposal but said a "strong case would have to be made" to impose this type of tax. The council said the money raised would be spent on climate change measures.
Read more: The empty shelves in Welsh supermarkets as shortages take hold
The supply of water stirs strong emotions in Wales following the flooding of Capel Celyn to the new Tryweryn reservoir in order to supply water to Liverpool. All 67 residents of the north Wales village were forced to move out and made homeless to create the new water supply.
You can find out how much water goes to England here. There are two water companies that border Wales - Severn Trent Water and United Utilities Water - and each are supplied with water from Elan Valley reservoirs, the River Dee and Lake Vyrnwy (which is owned by Severn Trent) in Powys
Jane Dodds, leader of the Welsh Liberal Democrats said it is an opportunity to raise funds off our national resources. She said: "An example is of course Lake Vyrnwy where we lost an entire village to build that reservoir and the water went to England. So what we want to be doing is saying we want to have some compensation, if you like, that comes back into our county, into Powys, which would then help with our local services."
The council does not currently have an estimation on how much the proposed tax would be but it is understood it could raise hundreds of thousands of pounds.
Conservative Councillor Aled Davies opposes the idea, and said it would raise costs of water for people in England at a time when the cost of living is substantial. He added: "I don't want to see that added to."
A Welsh Government spokesperson said: "Many businesses, including renewable energy businesses and water suppliers, already contribute to the funding for local services through non-domestic rates."
The UK Government said it was a matter for the Welsh Government but highlighted a 2017 protocol which says the actions of ministers and public bodies in Wales should not have a "serious adverse impact" on the water resources in England - and the protocol also applies in the reverse.
Read next:
