MPs took to Westminster Hall yesterday to debate a petition demanding a “binding national referendum” on renationalising water. The real debate is happening at the Treasury, where someone needs to explain how the Chancellor plans to pay for it…
The petition and the debate were a masterclass in leftist maths. It failed to mention that the OBR has already done the sums on what public ownership would actually cost. Buried in last year’s Fiscal Risks and Sustainability report, the watchdog warned that any “governance or policy change that increases government control” over water firms risks tipping them onto the public balance sheet. Once there, taxpayers inherit the lot. The OBR showed water companies were sitting on £91 billion of debt and other liabilities in 2023-24, against £12 billion in financial assets and £94 billion in pipes, reservoirs and other non-financial assets. Net it out and the OBR reckons public sector net financial liabilities could jump by roughly £78 billion. That’s 2.8 per cent of GDP…
Only Tory Gregory Stafford MP bothered to raise the soaring impact on the taxpayer, estimating the cost closer to £100 billion. Stafford also pointed to South Western Railway, where delays have doubled since nationalisation. Why would water function any better for consumers?
Ministers offered obfuscation rather than real figures. You’ll be waiting longer for a proper answer than you would for a South Western Rail train. That’s why Guido is launching a new campaign against Burnham’s public ownership plans, say hello to No2Nationalisation…
Andy Haldane, Burnham’s recent adviser on the economy who has not taken up a No10 job, told Andrew Marr on LBC:
“The market now suspects that this is a traditional tax-and-spend socialist government with better TikTok videos…
imposing windfall taxes on oil & gas or on banks or upping capital gains tax would […] repeat the mistake that Rachel made […] The Achilles heel, the fiscal Achilles heel of this government thus far has been its unwillingness and/or inability to cut public spending.”