Greater Manchester mayor Andy Burnham is reportedly planning to bring water and energy utilities under public control if he becomes prime minister, according to sources close to him. The move, described as a decade-long project, would represent one of the largest transfers of ownership since the privatisations of the 1980s but could cost taxpayers billions.
Burnham has stated he wants 'the essentials of life being run primarily for the public interest, not for the private interests'. His allies say he is 'completely serious' about taking over utilities to improve performance and potentially reduce bills. A small group of advisors, including outgoing MP Josh Simons and former energy minister Miatta Fahnbulleh, are collating ideas for government.
At the heart of the agenda is a proposal to bring utilities back under public control, starting with Thames Water. Burnham told the Guardian that public ownership is 'absolutely an option' for the stricken company. His allies want the government to take Thames Water into special administration rather than accepting a creditor deal that would write off up to £1bn in environmental fines.
Over about ten years, the entire water sector could be put in public control, modelled on utility companies in Berlin or Paris where municipal governments hold majority shares and give workers and residents board representation. Parts of the energy sector, including grid operations and distribution, would also be transferred into public ownership, though power generation and retail would remain private.
Critics argue such plans could cost taxpayers billions and compromise infrastructure upgrades. The government has said taking over Thames Water could cost £100bn, though some legal experts suggest it could be done more cheaply. Burnham's campaign manager, Louise Haigh, previously launched a similar plan to bring railways under public ownership.
