Public Utilities Plan
Andy Burnham Proposes Nationwide Public Control for UK Water and Energy
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Key Points
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Burnham said he would not shy away from explicitly using the plan to reduce welfare spending, telling The Guardian: “I am not squeamish about saying that the plan would be to reduce the welfare bill,” adding he wants a “more preventative state” that makes investments to “support people into work.”
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In an interview with The Times, Burnham said he would tighten regulation on government procurement specifically to push companies to hire “more Britons,” tying procurement changes to domestic employment rather than only broader “social value” objectives.
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Burnham’s proposed transition model is described as drawing “heavily” on municipal utility approaches in Berlin and Paris, with utilities moving into publicly managed structures as franchises expire or companies fail—rather than relying solely on direct central-state takeover.
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On costs, one report says the UK government has previously estimated taking over Thames Water could cost £100bn, while legal experts cited there argue the figure “could be lower” if creditors are forced to accept reduced compensation during administration proceedings.
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The Guardian details who is shaping the policy inside Burnham’s orbit: contributions cited include Josh Simons (outgoing Makerfield MP), former energy minister Miatta Fahnbulleh, John Wrathmell (Labour’s former head of economic policy), JP Spencer (devolution expert at ThinkLabour), and Tom Whitney (an adviser). A Burnham spokesperson did not comment further on the plans.
Andy Burnham wants to put water, energy, and transport under public control — and he wants it done within a decade. Manchester Evening News reports the Greater Manchester mayor is building a detailed plan to take over failing utilities, starting with Thames Water, if he becomes prime minister. The goal: lower household bills and run essential services for people, not profit.
City AM reports that Burnham's team is leaking a "municipal-led" model, where local governments hold a majority stake in publicly managed utilities. Residents and workers would sit on boards. The plan draws heavily on how Berlin and Paris run their water systems.
Thames Water Is Where the Plan Starts
Thames Water is the most immediate target. The government has previously estimated that buying out the water industry could cost £100 billion. But legal experts say the real figure "could be lower," according to The Guardian. If the company enters special administration — a form of government-run insolvency — creditors can be forced to accept reduced payouts, especially if they oversaw environmental failures.
Burnham's model would avoid cutting deals that waive environmental fines. One estimate puts the cost of a Thames Water special administration at just £4 billion to the Treasury — a fraction of the £100 billion scare figure — with money recovered later when the utility is restructured, columnist24.com notes.
Public Control Would Stretch Beyond Water Bills
Water is just the start. London Insider reports Burnham also wants public control over the national energy grid's operations and parts of the transport network. He would remove net zero levy charges from electricity bills. He is also proposing a one-year private rent freeze and capped bus fares. Supporters say these moves combined could cut the inflation rate by 0.6 percentage points.
On government contracts, Burnham told The Times he would tighten procurement rules to push companies to hire "more Britons." He also said he is "not squeamish about saying that the plan would be to reduce the welfare bill" — arguing a "more preventative state" that invests upfront in people can cut long-term welfare costs.
A Small Team Is Writing the Blueprint
The Guardian names the people shaping the plan inside Burnham's orbit. They include Josh Simons, the outgoing Makerfield MP; former energy minister Miatta Fahnbulleh; and John Wrathmell, Labour's former head of economic policy. Devolution expert JP Spencer and adviser Tom Whitney are also cited. A Burnham spokesperson declined to comment officially on the details.
The domestic proof of concept is Burnham's own "Bee Network" bus franchise in Greater Manchester — a franchised public model that gives local government control over private operators. The utility plan would work the same way: stepping in as franchises expire or companies fail, rather than buying everything outright through central government.
Critics Warn of a Heavy Bill for Taxpayers
Not everyone is convinced. City AM reports that analysts warn the "public control" label is designed to avoid the word "nationalization" and calm financial markets. Conservative leader Kemi Badenoch has warned of a "Burnham premium" on mortgages if the fiscal cost of taking over utility debt pushes up borrowing rates. Critics argue operating debts from struggling utilities would eventually force tax rises.
The political stakes are tied to the Makerfield by-election, scheduled for June 18. Burnham is standing as a candidate — a move widely seen as a stepping stone back to Westminster and a potential leadership challenge to Keir Starmer. uk.headtopics.com notes Labour holds a five-point lead in the seat, but one in ten voters remains undecided.
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