There are growing demands for water to be nationalised in the UK.
By Steph Spyro, Deputy political editor and envionment editor
Protesters demand public ownership of water at a protest (Image: Getty)
The Cabinet Minister who helped convince Margaret Thatcher to embrace mass privatisation has warned people backing water nationalisation to “read the history books”.
Lord John Redwood instead suggested the struggling sector needs a “better” regulator to allow more investment by the present water industry while preventing excessive returns.
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A YouGov poll found more than eight in 10 members of the public support bringing water companies into the public sector, including a majority among Reform and Conservative voters.
But Lord Redwood said: “All those who today think nationalising will make a difference should read the history books on just how bad the nationalised industry was.”
He added: “The nationalised industry did not have the money or the will to expand the pipe network to avoid the need to discharge sewage into rivers and sea, or to avoid losing so much water in bad pipes before reaching households.
“Every pound of new investment counted as public spending, and the needs of the NHS or schools were nearly always a more important priority than water facilities.
Today we need a better regulator to allow more investment by our present water industry whilst preventing excessive returns.
“The best way to do it would be to allow water competition. We have a competitive gas industry with a single pipe into every home, and could do the same for water.”
Lord Redwood served as the head of Thatcher’s Downing Street Policy Unit from 1983 to 1985.
He was instrumental in formulating the government’s landmark privatisation strategy, which saw water enter privatisation in 1989.
Soon-to-be Prime Minister Andy Burnham said in a speech on Monday that he wanted to take “greater public control” of the water and energy sectors.
One area where he has advocated direct public ownership is Thames Water, a move that is already on the cards after the government objected to a proposed rescue deal for the debt-laden company in June.
Cat Hobbs, director of pro-nationalisation organisation We Own It, said: “Water is a natural monopoly, we have no choice and the public is absolutely sick of being ripped off while sewage flows in our rivers and seas.
“‘Public control’ isn’t enough, it’s meaningless, it’s business as usual – it’s another word for regulation which has been failing households since water was privatised in 1989.
“We are calling on Andy Burnham to be crystal clear that he will end the scam and deliver permanent public ownership for all the English water companies. Ownership is the only way to get real control – wouldn’t you rather own than rent? It’s the same for the nation.”
Four in ten Britons (39%) believe the nationalisation of water companies would lead to lower bills, while 22% think there would be no real change and 14% think they would go up.
YouGov polling released on Friday found between 50% and 54% of Labour and Green voters think nationalisation would lower bills, relative to 39% to 40% of Lib Dem voters, 32% to 33% of Reform UK voters and just 24% to 25% of Conservatives.
Ms Hobbs added: “Burnham can do this affordably by forcing all companies to deliver massive investment out of their own pockets or go bust. When they fail there is legislation he can use to protect the public interest and take them back without compensation. Why should English households be a revenue stream for shareholders around the world?
“Taking back our water would save money that can be invested in lower bills, cutting sewage and leaks or both. That’s because right now a whopping third of every water bill is paying for shareholder dividends and the debt they’ve racked up at our expense.”
A petition backed by Undertones star and clean water campaigner Feargal Sharkey calling for a referendum on the issue has amassed more than 150,000 signature.