It is still a bit of a mystery to most of us – and possibly to the candidate himself – what Andy Burnham actually believes in. Still, amid all the waffle, one point has come through with complete clarity. He thinks utilities such as railways and water should be under public control. When asked about this earlier this month, he said: ‘Public ownership is absolutely an option. I would say for Thames Water, that is what should be done.’
That is all well and good. But it appears that Thames Water is likely to face a cash crunch in the coming months – and, should he become prime minister, Burnham and his administration will face its first big crisis as a result.
The outlook is dire
Keir Starmer’s government today decided to reject a proposed private sector rescue deal, meaning that Thames Water has already moved a step closer to full-scale state ownership. A consortium of investors had agreed to put £10 billion into the company through a mix of equity and loans, but the government has decided the planned deal does not do enough to protect consumers and the environment. If nothing can be agreed, Thames Water may well collapse over the summer.
By then, of course, Starmer may be out of a job. Indeed, with a more left-wing prime minister in No. 10, investors are going to be even less keen than they already are to put money into British infrastructure. The outlook is dire.
