At the height of the privatisation bonanza of the 1980s, Margaret Thatcher's government spent vast sums on TV and billboard adverts urging the public to buy shares in British Gas. It was the era of the Great Flog-off, promising a bright, shareholder-led future. Now, in 2026, the sheen has worn off. Whether it is the state of railways or rivers in England and Wales, the argument for private ownership of public essentials looks increasingly threadbare.
However, nationalisation is not a magic wand, according to Dr Simon Griffiths, reader in politics at Goldsmiths. He discusses the fiscal trauma of the Liz Truss era, the pragmatic case for public ownership of railways, and why Keir Starmer is terrified of spooking the markets even when the public is on his side.
The Shift in Public Mood
The 1980s Tory promises of a shareholding democracy feel like a lifetime ago. Today, the public is less concerned with dividends and more concerned with trains turning up on time or safe beaches, as shareholders appear to rake in profits. While the public mood has shifted, the government's hand remains hesitant.
What Did Keir Starmer Promise on Nationalisation?
During the 2024 general election campaign, Starmer's Labour pitched a vision of national renewal with significant moves toward public ownership. Pledges included a state-owned Great British Energy, renationalisation of railways as private contracts expired, and a tougher stance on water companies. This platform aimed to look radical to the base but fiscally responsible to the City. But Griffiths notes that as Starmer's position became more secure, he became increasingly cautious, replacing nationalisation with pragmatism.
What Has Labour Done in Government?
Results are mixed. Railways are a win: as Great Western Railway and others see contracts lapse, they are folded back into public hands. Cambridge South station will open shortly, the first to be badged Great British Railways (GBR), and trains with new livery have been seen. Derby benefits from the new GBR headquarters, and Aberdeen from Great British Energy HQ. Elsewhere, the government has been forced into activist roles, such as the Steel Industry (Nationalisation) Bill, introduced after disastrous May elections, giving power to bring British Steel into public ownership to prevent collapse at Scunthorpe. It is a break-glass-in-case-of-emergency measure, not an ideological choice.
How Popular Is Nationalisation?
Nationalisation is very popular in certain spheres. Campaign group We Own It argues support for public ownership increased substantially between 2017 and 2024, citing YouGov polls: 66% want buses in public ownership, 64% want care homes, 64% want energy, 55% want more services run in-house by councils, and 76% want railways nationalised. Griffiths says the demographic associating inefficiency with nationalisation is shrinking. To a voter in 2026, the private sector has delivered high bills, sewage, and unreliable trains.
Why Has Labour Been So Cautious?
Nationalising a company like Thames Water would be an easy win with voters, but the government is spooked by the memory of Liz Truss's 2022 mini-budget and the market's violent reaction. It demonstrated limits to what can be done without markets pushing up interest rates. Labour fears seizing assets or ignoring shareholders would trigger a crisis of market confidence, governed by a fear of markets that exists perhaps for very good reason.
Would an Alternative Prime Minister Make a Difference?
Andy Burnham is all but certain to challenge for the Labour leadership and Number 10 if he wins the Makerfield byelection. He has suggested mass renationalisation at the centre of his platform, saying the policy decisions of the 80s left services that work for private shareholders, not the paying public. Whether Burnham can persuade bond markets remains the question. His pitch challenges the ultra-caution defining Labour in government. Thames Water has said Burnham floating nationalisation damages its recovery prospects.
For decades, the ghost of the 1970s was used to scare us away from public ownership. But as sewage flows and bills rise, more voters decide the only thing scarier than the past is more of the same.
