Burnham vows law change to allow public ownership of water companies
Andy Burnham told Labour's conference he will legislate to repeal the ban on public ownership of water companies, promising a ten-year route to "a very different water system" and new mayoral powers to hold failing firms to account.
Prime Minister Andy Burnham has announced he will legislate to repeal the ban on the public ownership of water companies, promising a ten-year route to “a very different water system” for England and Wales.
Burnham told Labour’s conference in Liverpool that environment secretary Dame Angela Eagle would present a strengthened Water Bill to parliament, whose centrepiece would be “the repeal of Margaret Thatcher’s ideological ban on public ownership of water companies”.
“Water is a symbol of what has gone wrong with Britain. A service where the shareholders never lose and the public never win,” he said. “From which some have siphoned out easy money while the public picked up the bill for the sewage in our seas. It stinks. I will not allow it to continue like this.”
Under the plans, mayors would gain new powers to hold water companies to account, with tougher consequences for repeated failures, closing the loopholes used to pay excessive bonuses. “Where private companies serve the public interest, we will support them,” Burnham said. “But the consequences will be clear for those who do not, including taking back control or ownership.”
Water suppliers in England and Wales were privatised in 1989. There are 11 regional water and sewage companies, and the sector has become seen as one where profit has been prioritised over the environment and affordable bills.
The announcement will be closely watched by investors in Thames Water, the country’s biggest supplier with 16 million customers and billions of pounds of debt, which has faced mounting fines for polluting rivers with sewage. The government and regulators are currently considering whether to approve a creditor-led rescue plan for the company.
Shares in Severn Trent, Pennon and United Utilities fell by 0.9 to 1.6 per cent after Burnham said public ownership would become possible.
Sources
- Reuters, “UK PM Burnham plans law change to allow public ownership of water companies”, 29 Sept 2026
- The Times, “Andy Burnham delivers first Labour conference speech as PM — watch live”, 29 Sept 2026
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