“People expect and want Government intervention into our economy to improve their lot and make it work for people.”
By Siân Errington
Just two years after their election, the Labour government have changed leadership – giving Britain its 8th Prime Minister since the financial crash 18 years ago – with Andy Burnham stating his priority will be to address the cost-of-living crisis.
That crisis is deep and widespread. It is a product of the deeper, structural problems in our economy that have been evident for decades – there is now such a wealth of research and analysis of this, and yet a continual failure to act.
For example, in March 2025 the Joseph Rowntree Foundation released the rather bleak analysis that “[2024] may in fact prove to be the high point for living standards [in this Parliament]”. A few months later, in July 2025, this was followed by the damning analysis that “A year into the new Labour Government, there has been no improvement in the key measures of hardship, with over 7 million low-income families still going without essentials”.
As well as the absolute levels of poverty creeping up – foodbanks are now a horrifyingly normalised part of our society – it is noticeable that economic fears and the impacts of falling disposable income reach into homes that outwardly may appear secure and comfortable. In January 2026, YouGov polling put the ‘cost of living’ as the top concern overall (54 per cent of people). Only 8 per cent of people felt the Government was managing the cost of living well. Just 15 per cent of people had been able to maintain their spending and did not expect to have to make cuts soon. The other 85 per cent of people were divided between those who have made cuts already (44 per cent had made cuts and were expecting to make more) and those who had been able to maintain spending so far but were expecting to make cuts. That such a substantial number – over four-fifths – combined are either going without or are fearful of what they may soon not be able to afford, is grim reading.
A later question in the YouGov polling asked what people felt was a factor in the rising cost of living. Interestingly, a failure of government to take strong action was the top answer (65 per cent of people), backing up the range of research over the years that people do expect and want Government intervention into our economy to improve their lot and make it work for people. Phrases abound that reflect this, and infrequent is the day when you do not hear gripes aired about ‘rip-off Britain,’ and variations of complaints against profiteering and large corporations. Decisive action that intervenes strongly on people’s behalf and addresses the power and wealth imbalances in our economy is needed – and wanted. People do not accept that government should be passive in the face of ‘markets’.
When asked explicitly whether people would want cash transfers or action to reduce the bills people have to pay, overwhelmingly Government action to reduce bills came out top (64 per cent).
We know from numerous and separate research that public ownership of energy, water and transport is popular. It is worth re-stating again and again that it has long been a strong part of the international evidence base on public ownership that it can drive better quality and delivery, as well as being more cost-effective. This is because it can fully re-invest revenues generated at every level, can direct investment in a strategic way for a multiplicity of social goals and does not have profits or shareholder dividends extracted at any level.
In short, public ownership – particularly of energy and water – meets not just a macro-economic need of properly upgraded infrastructure in a country that has chronically under-invested for decades and now needs to transition its economy. It would also be directly felt by people as addressing an urgent need of households in meeting the cost-of-living crisis in a long-term, sustainable way rather than a quick fix, or a ‘sticking plaster’ such as a cap that gets some people through the next months.
It is by no means the only answer; for example, there is a need to lower housing costs, to retrofit homes, to raise income levels – whether wages through stronger collective rights and ending insecure work or improving benefits – to have universal childcare, and action to improve access to affordable, healthy food and more. But public ownership of our key resources and services as part of the redistribution of power and wealth is a necessary part of the answer.
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