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PM Andy Burnham will scrap the 1989 ban on public ownership of water companies, opening a 10-year route to public control. Should Britain take water back?

PM Andy Burnham will scrap the 1989 ban on public ownership of water companies, opening a 10-year route to public control. Should Britain take water back?

Burnham told Labour's conference that water is "a symbol of what has gone wrong with Britain". The Water Act 1989 caps state ownership of water companies at 1–3%. Thames Water carries about £20bn of debt, and one analyst says buying the whole sector could top £200bn.

What happened

In his Labour conference speech in Liverpool on 29 September, Prime Minister Andy Burnham said he would present a strengthened Water Bill that repeals the ban on public ownership of water companies, setting a ten-year route to "a very different water system". The Water Act 1989, which privatised the industry, limits government ownership to 1–3% depending on the company. England and Wales have 11 regional water and sewage companies. Mayors will also get new powers to hold them to account. Shares in Severn Trent, Pennon and United Utilities fell 0.9% to 1.6% after the announcement.

Why people disagree

Supporters say privatisation has delivered sewage pollution and heavy debt, with Thames Water alone owing about £20bn, and a YouGov poll in May found 82% of Britons want water run by the public sector. Critics say buying out the sector is hugely expensive (one analyst puts equity plus required investment at over £200bn) while public finances are tight, and that tougher regulation of private firms could fix failures without taxpayers taking on the bill.

What's still unclear

Burnham has not said which companies, if any, would be taken over, how they would be valued, or how it would be paid for. Details are due in a "10-year plan for Britain" later this year, with a Budget at the end of October.

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