Millions of Britons face higher water bills as the regulator has approved a 36 per cent hike for 2025-2030, and further increases are expected. Shadow Environment Minister Neil Hudson writes that Prime Minister Andy Burnham has expressed anger but has not taken action.
Burnham's response criticised
Mr Burnham said he is "angry" and that customers "cannot be treated as a blank cheque," but so far he has not actually done anything. Dr Hudson notes that Mr Burnham is not a commentator now, he is the Prime Minister.
It is particularly alarming that Thames Water – Britain's biggest water supplier, laden with £20 billion of debt – is getting approval to put prices up further.
Nationalisation concerns
It is widely known that Mr Burnham favours nationalisation as a solution for Britain's water system. But nationalising water companies would cost the taxpayer billions and would also mean even higher water prices – or yet more tax rises – for families.
In the last week in the constituency of Epping Forest, thousands of homes have been without water for days due to burst pipes and failing infrastructure. Homes without water, people not being able to flush their toilets or bathe, parents not having water to make up bottles for their babies, livestock owners panicking over getting water to their animals. Thames Water have not provided enough emergency water collection points and vulnerable people are distressed.
Call for a long-term plan
Ofwat cannot keep approving big price rises forever. There needs to be a genuine long-term plan for how to deliver better, more reliable water supplies at prices that families can afford. Labour have not produced that, and if they go down the nationalisation route, they will fail.
A well-functioning, properly-regulated water system out of public ownership is achievable if there is the political will to make it happen. Water companies must not be able to rack up huge debts. The Conservatives tabled amendments to the Water Special Measures Act to stop water companies doing this, but Labour voted against these measures.
The Conservatives began the crucial reform to ensure that in the long-term Britain's water system is clean and sustainable. It requires billions of pounds of private investment if billpayers are to be protected. Labour should focus on delivering that, rather than flirting with ideological projects like nationalisation that would deliver more expensive outcomes for families.
