Labour used water industry analysis to argue against nationalisation

finance
Created 9/29/2024
Updated 9/29/2024

Labour has been criticised for using an "economically illiterate" analysis funded by water companies to argue against nationalising England's water sector. The 2018 report, commissioned by United Utilities and others, estimated re-nationalisation costs at £90bn, a figure disputed by Moody's, which suggests £14.5bn. Environment Secretary Steve Reed has ruled out nationalisation, citing high costs and inefficacy in solving the sewage crisis. Instead, Reed is seeking private investment to support struggling water firms like Thames Water. Critics argue that continued privatisation risks financial instability, urging Labour to consider public ownership for accountability and infrastructure improvement.

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