Full details of Burnham’s water overhaul may wait until 2027 spending review
A broad plan for England’s water sector is expected in December, but officials are still working through how greater public control would operate and what it might cost.
Prime Minister Andy Burnham’s plans for greater public control of England’s water industry may not be fully detailed until a spending review in 2027, POLITICO reported on 21 October. A broader 10-year plan is expected in December 2026, leaving water companies, investors and customers waiting for decisions on how future ownership would work and what it could cost.
Two people familiar with the policy discussions told POLITICO that the December plan is expected to set out a vision, priorities and principles, while much of the detail on ownership models would come later. They said some key decisions could be set out in Chancellor John Healey’s multi-year spending review. No date for that review has been decided.
What the December water plan may contain
A government official told POLITICO that the 10-year plan would contain some finer detail, but acknowledged that fiscal implications are usually handled at fiscal events. Officials are working through a range of options for public control and have yet to settle which approach, or combination of approaches, to pursue. Transferring privately owned shares to public ownership could require the Treasury to find billions of pounds, POLITICO reported.
Burnham said last month that a forthcoming water bill would remove the ban on the government owning more than 3% of shares in an English water company. Environment Secretary Angela Eagle is due to bring the bill to Parliament before Christmas. POLITICO said it would also address executive bonuses and give regional mayors scrutiny powers. Burnham has said he does not intend to fully nationalise the industry.
Pressure over Thames Water
The timetable comes as Burnham faces pressure over Thames Water, which The Guardian reported needs £2.4 billion to stay afloat. Since NewsJaws covered his request for more radical options for the company, the new timetable has clarified when the government may explain its wider sector plans.
The Guardian reported that Cat Hobbs of the campaign group We Own It has written to the government and regulator Ofwat, urging them to block bill rises and bring Thames Water into public hands. Richard Murphy, a tax accountant, called for emergency legislation and a state-owned company ready to take over Thames Water’s operations. Ewan McGaughey, a King’s College London law professor, urged Burnham to prepare for court action. Their proposals are calls for action, rather than government decisions.
Water UK chief executive David Henderson has urged ministers to move ahead with reforms proposed by former Bank of England deputy governor Jon Cunliffe. The trade association warned that an industry-wide Moody’s downgrade could add £40 to customers’ annual bills, according to POLITICO. That figure is Water UK’s conditional warning, not an announced bill increase.
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Sources and context
- Water sector to wait until 2027 for full details of Burnham’s overhaulPOLITICO Europe
- How might Andy Burnham tackle Thames Water debacle?The Guardian
AI-assisted article checked against the listed sources. NewsJaws did not conduct interviews or attend the reported events.