Burnham’s public utility agenda faces fiscal scrutiny ahead of byelection
Sources indicate Andy Burnham is serious about a decade-long strategy to bring utilities under public control, starting with Thames Water, but critics warn of billions in taxpayer costs.
Sources close to Greater Manchester mayor Andy Burnham indicate he is serious about implementing a decade-long agenda to bring water and energy utilities under public control should he become prime minister. The proposed policy aims to improve utility performance and reduce consumer bills, with the immediate priority being the takeover of Thames Water via special administration rather than a creditor deal.
Burnham has explicitly stated that public ownership is “absolutely an option” for Thames Water, which he believes should be taken into special administration. Allies propose that the government take over Thames Water after administrators insist on creditor compensation, potentially at a lower cost than the £100bn figure cited by the government, depending on legal interpretations of creditor compensation.
The energy sector takeover would likely include grid operations (National Grid) and regional distribution, but would exclude power generation and retail electricity sales, which would remain private. A separate cost-of-living package under consideration includes a one-year freeze on private rents, a cap on bus fares, and the removal of green levies from electricity bills (funded by taxes), backers claim would reduce inflation by 0.6 percentage points.
This cost-of-living package could be partially funded by an increase in capital gains tax, a proposal previously advocated by Wes Streeting. Policy development is being assisted by Josh Simons, Miatta Fahnbulleh, John Wrathmell, JP Spencer, and Tom Whitney. Critics warn the move could cost taxpayers billions in infrastructure upgrades and running costs, potentially conflicting with Burnham's pledges to adhere to existing borrowing rules and not raise income tax or national insurance.
