Andy Burnham, the Mayor of Greater Manchester, is reportedly considering a shake-up of insolvency laws to make it easier to bring utilities under public control.
Potential legal changes
The move would involve altering the legal framework governing insolvency, which currently presents barriers to the public acquisition of failing utility companies. The proposal is at an early stage, with no formal legislation yet drafted.
Under existing rules, when a private utility company becomes insolvent, the process typically favours private buyers or liquidation, making it difficult for public bodies to step in and take over operations. A change in the law could allow public authorities to acquire such companies more directly and efficiently.
Motivation and context
Burnham has been a vocal advocate for greater public control of essential services, arguing that utilities should be run in the public interest rather than for private profit. The potential reform is seen as a way to remove legal obstacles that have historically hindered municipal ownership.
The report, published by The Guardian, indicates that the mayor is exploring options to give local leaders more powers to intervene when utilities fail. No specific utilities or companies were named in the initial discussions.
Next steps
Any formal proposal would require significant consultation and likely parliamentary approval, given that insolvency law is a reserved matter. Burnham's office has not yet issued a public statement on the timeline or details of the potential reform.
The idea remains under consideration, with further discussions expected in the coming months.
