The poisoned chalice of trying to nationalise Thames Water

Keir Starmer won the Labour leadership election in 2020 on the back of a promise to nationalise public utilities. In one of his most blatant flip flops, he later went back on that, committing instead only to nationalise the rail industry – and even then by degrees as current franchises reached the end of their lives. But could the Prime Minister find himself driven towards a much broader nationalisation after all, and at high political cost?

The question arises because of Thames Water, which has warned it could go bust next year if it is blocked from jacking up customers’ bills to help fill its own £15 billion financial black hole. The company wants to raise bills by 60 per cent over five years, but the regulator Ofwat only wants to allow an increase of 23 percent. This would appear to doom the company unless it can be refinanced, or possibly sold.