A few weeks ago there was an exchange of letters between Michael Gove and the chairman of Ofwat.

In his short letter Michael Gove highlighted a number of points he found unacceptable in the privatised water industry. A new report from the Social Market Foundation think-tank assessing the likely costs associated with nationalising the water and sewerage industry in England has concluded that the best estimate gives a ‘takeover value’ of £90 billion. Robust defence of water companies by CEO of Water UK. At the weekend Labour escalated the debate with further claims many of which were very similar to those in the Gove letter. 

Private water payouts are a public scandal, says Labour

John McDonnell promises renationalisation of water, energy and rail under Labour

Guardian: Labour launched a full-frontal attack on the privatised water industry last night, accusing companies of paying out the “scandalous” sum of £13.5bn in dividends to shareholders since 2010, while claiming huge tax breaks and forcing up prices for millions of customers. The assault by shadow chancellor John McDonnell came as he pledged total, “permanent” and cost-free renationalisation of water, energy and rail if Labour won power at the next election. The three privatisations in the 1980s and 1990s became hallmarks of the Tory governments of Margaret Thatcher and John Major. The dramatic intervention – which stunned the companies involved – was the strongest denunciation yet by Jeremy Corbyn’s Labour of the privatisation programme that has become part of the British political landscape of the last 40 years. The Conservative party and the Confederation of British Industry both condemned McDonnell’s comments. The CBI said Labour’s renationalisation agenda would “wind the clock back on our economy” while chief secretary to the Treasury Liz Truss warned that placing politicians in charge of public utilities “didn’t work last time and won’t work this time”.

McDonnell told the Observer that water companies could not even claim to offer choice to customers but instead operated regional monopolies, and were therefore able to increase prices without the risk of losing out to competitors, as well as “load up debt” while paying out huge dividends to shareholders. Click here to read more