“Privatisation has delivered a model which underinvests in infrastructure and leaves the public paying extortionate sums for a highly underwhelming service.”
In our Red Weekly Column, Ben Hayes looks at the case for public ownership of water — from the legacy of Thatcher-era privatisation to the fight to put nationalisation on the agenda.
It’s easy to forget that the last time there was a vacancy for the leadership of the Labour Party, every candidate on the ballot declared their support for public ownership of utilities- indeed, this position formed the basis for one of Keir Starmer’s now infamous 10 pledges. In many ways, the fate of this pledge tells the story of his tenure: running as far away from many of the party’s existing policies at a time when the case for them had never been stronger. A series of open goals for any government looking to deliver meaningful and popular change have been spurned, with an especially glaring one being the state of water provision.
As with many of Britain’s ills, the roots of the current situation can be traced back to the legacy of Thatcher’s government, with privatisation being implemented in 1989 as part of a series of sell-offs. At the time, the Prime Minister declared in the House of Commons that “privatisation of water is very much a better deal for the consumer.” It’s fair to say that the reality has proven rather different. Since then, water bills have gone up 44% in real terms, with shareholders taking an estimated £85 billion out of the system whilst the companies are around £82 billion in debt. Once again, privatisation has delivered a model which underinvests in infrastructure and leaves the public paying extortionate sums for a highly underwhelming service.
Unsurprisingly, evidence suggests that there is a huge appetite for serious change. Polling from YouGov has found that 82% of the electorate favour public ownership of water, with the overwhelming majority of voters from all major parties backing nationalisation. The run-up to the last general election also saw Survation find that 56% cited the government’s approach to the pumping of sewage in rivers and seas as a significant factor in how they intended to vote following a series of high-profile campaigning initiatives over the issue.
Given the well-funded efforts to prop up the current failing system from lobbying firms (whose ranks include several former MPs), it is important to be clear that public ownership is not only popular but eminently practical. 90% of European countries operate some form of public model, and when it comes to bathing water the top seven nations ranked for quality by the European Environment Agency all have at least 90% of their supply run by the government Even in a British context, Scotland has maintained a state-owned supplier and kept bills on average £107 cheaper compared to England.
The man who looks all but certain to become Britain’s next Prime Minister, Andy Burnham, recently described “40 years of neoliberalism” as having taken the country down the wrong path and called for “action to make the basics of life more affordable, like rents, bills, and fares”. Backing the overwhelming majority of public opinion across the divide, not only of regions but current voting intention, by implementing public control of our water system would immediately demonstrate a meaningful commitment to changing course.
Of course, a policy having popular support does not ensure there will not be significant resistance to it. Whilst the legacy of the Iraq War may mean only the most hardcore of his ideological allies in the Parliamentary Labour Party are prepared to loudly champion Tony Blair as an individual these days, his essay declaring that the problem with Starmer’s government has been it representing “an essentially traditional Labour ‘soft left’ position, parked firmly in the party’s comfort zone” offers a preview of the arguments to come from a chunk of MPs and their co-thinkers in much of the media. Whist the big choices which doomed any hopes of even enjoying a honeymoon phase after defeating a spectacularly unpopular Tory government were ones that went against traditional labour movement stances and alienated the party’s natural electoral coalition (such as cuts to the Winter Fuel Allowance and disability support), the narrative pushed will be that Labour must, above all else, show it is willing to dance to the tune of capital – making serious action on sectors like water out of the question. This may not be backed up with electoral evidence, but it will get more than its fair share of funding and platforms to boost it.
Alliances for public ownership must be similarly determined and can take confidence in having both popular opinion and policy evidence on their side. There have already been various welcome steps in recent years- the March for Clean Water mobilised tens of thousands in London, a Private Members’ Bill proposed by Norwich South MP Clive Lewis has helped push it further up the agenda; UNISON’s Clean Water Report offered an important trade union perspective; and the campaigning organisation We Own It has both published valuable material making the argument and organised various initiatives to demonstrate the levels of support for meaningful change.
For all the challenges of the current period, there are also real opportunities to push forward – finally moving on from the disaster of water privatisation represents a chance to bring down the cost of living, make serious progress on infrastructure, and open up the parameters of what can be achieved on a whole host of policy fronts.
- Ben Hayes is an Arise Festival volunteer and a regular contributor to Labour Outlook.
- The Red Weekly Column will appear each week on Labour Outlook from one of our regular socialist contributors.
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