Privatisation of water firms ‘difficult to reverse’, Burnham admits
Andy Burnham, speaking in the Commons for the first time as Prime Minister, admitted that reversing the 1989 privatisation of England's water companies would be "very difficult" as his government considers "all possible solutions" for the troubled sector. He pledged to secure "stronger public control" over essential services such as water, arguing the industry has become "a leaking monument" to a failed policy of privatisation, and blamed sewage discharges and inadequate reservoir capacity for damaging tourism and disrupting supplies.
His comments came as the UK experienced its hottest summer since records began in 1884, with drought declared across most of England and all of Wales, hosepipe bans affecting around 30 million people, and reservoir storage averaging below 60%. Pollution warnings were also issued at several beaches, including Wells-next-the-Sea, Hastings, Weston-super-Mare and Blackpool. Under the previous government, nationalising the water industry was estimated to cost roughly £100 billion, and Burnham stopped short of committing to all 88 recommendations of Sir Jon Cunliffe's Independent Water Commission report when pressed by Conservative MP Alison Griffiths.
In short
- Burnham says reversing 1989 water privatisation would be very difficult
- UK suffered hottest summer on record amid drought and hosepipe bans
- Nationalisation previously estimated to cost around £100 billion
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The scale of sewage pollution, drought disruption and inadequate reservoir capacity can support the case that water needs stronger public control, with accountability focused on reliable services and environmental protection rather than private returns. If current arrangements have failed to deliver those outcomes, changing ownership could be justified as a long-term way to align investment and decisions with the public interest.
The case against
Reversing privatisation would be difficult and, at an estimated cost of roughly £100 billion, could place a substantial burden on taxpayers while diverting resources from fixing immediate problems. Reforming regulation and requiring firms to improve performance may offer a more practical route to cleaner water and greater resilience, while preserving private investment and avoiding the risks of a disruptive ownership change.
Explained simply
England’s water companies were privatised in 1989, transferring their operation from public ownership to private firms. They provide drinking water and manage wastewater, including sewage treatment; Wales has a different mix of public and private ownership.
The debate centres on who should own and oversee these essential services, and how to pay for investment in pipes, reservoirs and sewage treatment. Changing ownership could be costly and complicated, while the sector’s performance affects household supplies, public health, rivers, beaches and local economies.