Burnham ally proposes plan to reverse privatisation of UK utilities
8 reported
A policy paper titled The Productive State, authored by Mathew Lawrence, a close ally of Andy Burnham, proposes a framework to reverse 40 years of privatisation in the UK. The paper, released on Monday as Burnham is sworn in as MP for Makerfield, advocates for taking over failing utilities through special administration, using “bonds for shares” exchanges, and setting up state-owned competitors. Lawrence, director of the thinktank Common Wealth, drafted the essay independently of Burnham but inspired by his agenda. The paper argues that privatisation has led to a “privatisation premium” that makes essentials unaffordable and transfers wealth from households to investors. It has been praised by Labour figures including former minister Miatta Fahnbulleh and Labour peer Stewart Wood. The Guardian previously reported that Burnham’s allies have discussed a 10-year project to bring water and energy sectors into public control, potentially starting with Thames Water.
What’s reported
The policy paper The Productive State is released on Monday as Andy Burnham is sworn in as MP for Makerfield.
Author Mathew Lawrence is close to Burnham and has worked with him on public control of utilities.
The paper proposes taking over failing utilities in administration, using “bonds for shares” exchanges, and setting up state competitors.
It criticises 40 years of privatisation as central to the UK’s growth and productivity struggles.
The essay argues that a “privatisation premium” acts as a hidden tax on households.
Burnham does not advocate blanket nationalisation but a framework for greater state intervention.
The Guardian previously reported Burnham’s allies have discussed a 10-year project to take water and energy sectors into public control, likely starting with Thames Water.
Labour figures Miatta Fahnbulleh, Stewart Wood, and MP Yuan Yang praised the essay.
Key figures
Andy Burnham: MP for Makerfield, former mayor, expected to seek to replace Keir Starmer as prime minister.
Mathew Lawrence: Author of The Productive State, director of thinktank Common Wealth.
Miatta Fahnbulleh: Former minister advising Burnham on policy.
Stewart Wood: Labour peer, former economic adviser to Ed Miliband.
Yuan Yang: Labour MP, member of Tribune group.
Luke Hurst: National coordinator of Mainstream.
Sources: The Guardian
