Burnham’s water industry plan may cost £105 billion, study says

UK Prime Minister Andy Burnham's proposal to increase government control over England's water industry may come with a substantial price tag, according to a new study. The analysis, conducted by research consultancy PF Global on behalf of Water UK trade association, suggests the plan could cost around £105 billion. The estimate encompasses the acquisition of England's 14 water companies, which were privatized nearly four decades ago and are now facing pressure to invest in older infrastructure.

The report, which relies on recent sector transactions and the value of regulated assets, notes that lower published estimates do not consider the considerable debts still owed by these companies if they remain under public ownership. Burnham previously promised to bring the sector under public ownership when he took office in July, but has since shifted his focus to enhancing public control.

In a recent announcement, he removed limits on state ownership of water utilities. The £105 billion figure applies solely to companies in England, while the government previously calculated a lower cost of £100 billion for companies in both England and Wales. A separate analysis by Frontier Economics estimates the cost at approximately £144 billion in 2030, based on the industry's projected regulated capital value.