Three former directors of Severn Trent were spared prosecution over the company’s deliberate misreporting of water leakage levels because of concerns about the possible length and cost of their trial, the Old Bailey has been told.

However, in a sentencing hearing against the company on Monday, Brian Duckworth, Mark Wilson and John Banyard were accused of directing a “successful and sustained” campaign of dishonesty to mask leakage rates that were substantially higher than those provided to the water regulator, Ofwat.