Prime Minister Andy Burnham plans to outline a 10-year strategy for increased public control over essential services like water, energy, and transport. Allies are urging him to pursue financial control, not just oversight, to address issues like sewage spills and rising bills.
The Prime Minister's push for greater public control over essential services could significantly alter the landscape for utility companies, investors, and consumers by potentially increasing regulation, changing ownership structures, and impacting profitability and investment models.
Prime Minister Andy Burnham is set to reaffirm his commitment to bringing water, energy, and transport industries under greater public control, with a detailed 10-year plan expected in November. This initiative aims to reverse what Burnham describes as "wrong turns" taken since the 1980s, which he argues led to the privatization of economic power and deindustrialization.
Burnham's allies, including Mathew Lawrence of the Common Wealth thinktank and Mark McVitie, have cautioned that merely granting mayors and regional bodies oversight of utilities like water companies will not be enough. They argue that true public control requires financial authority to ban dividend payments, reduce the cost of capital, and potentially renationalize services if necessary. Their concerns stem from reports that the government is considering establishing regional bodies to hold water companies accountable for issues such as bills and sewage discharges, but without clear financial control.
Burnham's approach emphasizes devolving power to regions, a strategy he believes proved successful during his tenure as Greater Manchester mayor. He intends to extend this offer of devolution to all parts of England, including areas without elected mayors. However, Conservative leader Kemi Badenoch has criticized Burnham's plans, accusing him of advocating for "more government control, more taxes and more politicians" and questioning his economic theories.
In the immediate term, the government faces a decision regarding the financially troubled Thames Water. Burnham has previously expressed a desire to nationalize the company, a move that could cost billions. Reports suggest he is considering placing the company into special administration as a potential first step toward nationalization, amid growing public dissatisfaction with the water industry.
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