The Government has confirmed its intention to bring forward a Water Reform Bill, ending what Andy Burnham called a Thatcherite “ideological ban” limiting government ownership of shares in England’s big water and sewerage companies. In reality, no statutory ban has ever actually existed…After Labour conference the impact on markets and on the taxpayer, has started to become clear. Buried in the small print of the latest Fitch Ratings verdict is a warning. Any major concern about the regulator’s independence, or the possibility of political interference in how tariffs are set, “may trigger a negative review of sector risk“. Keep flirting with nationalisation and the whole sector gets more expensive to finance…Water companies are already paying more to borrow as the bond traders price in political uncertainty. South East Water recently had to abandon an attempt to raise more money. South West Water-owner Pennon’s share price tanked the other week after the company cut its dividend to put more money into investment. Six months ago the market was cheering water firms for spending more on their networks, now it’s the opposite. The cost of political uncertainty will end up pushing up consumer bills, whether Burnham gets his nationalisation drive or not…
Kemi Badenoch at the 1922-ConHome bash last night:
“I did praise [Burnham] for his stamina, it was amazing. All I had to do was sit back and lie there. I didn’t have to do anything at all…”