Burnham allies propose public control of water and energy utilities

Burnham allies propose public control of water and energy utilities

8 reported

According to sources close to Greater Manchester mayor Andy Burnham, a plan to bring water and energy utilities under public control would be central to his agenda if he becomes prime minister. Allies say the move could improve performance and potentially reduce consumer bills, but critics warn it could cost taxpayers billions for infrastructure upgrades. The proposal would start with Thames Water, which Burnham has said should be taken into public ownership. Over about 10 years, the entire water sector could be brought under public control, modeled on utility companies in Berlin or Paris. Parts of the energy sector, including grid operations and regional distribution, would also be transferred to public ownership, though power generation and retail electricity sales would remain private. Burnham has not spelled out the national-scale plan in detail, and a spokesperson declined to comment further. The article is based on a single source, The Guardian, and has not been cross-referenced.

What’s reported

A decade-long project to bring water and energy into public control is central to Andy Burnham’s agenda, according to sources close to him.
The move would be one of the biggest transfers of ownership of British industry since the 1980s privatisations.
The plan would start with Thames Water, which Burnham said should be taken into public ownership.
Over about 10 years, the entire water sector could be put in public control, modeled on Berlin or Paris utility companies.
Parts of the energy sector, including grid operations and regional distribution, would be transferred to public ownership; power generation and retail sales would remain private.
Critics say the plan would come at a heavy price to taxpayers, and Burnham has promised to stick to existing borrowing rules and not raise income tax, VAT, or national insurance.
Burnham has also considered cutting some employers’ national insurance and business rates for pubs and small businesses.
Some allies want him to announce a package including a one-year freeze on private rents, a cap on bus fares, and removal of green levies from electricity bills, paid for by taxes.

Key figures

Andy Burnham, Greater Manchester mayor
Josh Simons, outgoing Makerfield MP
Miatta Fahnbulleh, former energy minister
John Wrathmell, Labour’s former head of economic policy
JP Spencer, devolution expert at ThinkLabour thinktank
Tom Whitney, adviser to transport secretary Heidi Alexander
Louise Haigh, Burnham’s campaign manager and former transport secretary
John Healey, former defence secretary
Wes Streeting, former health secretary

Sources: The Guardian

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