Burnham tears up Thatcher's water privatisation law to open door to public ownership of failing firms

From the Newshound archive · first published 29 September 2026 · last updated 30 September 2026.

Andy Burnham used his Labour conference speech to announce an enhanced Water Bill that would repeal Margaret Thatcher's 1989 law banning public ownership of water companies, promising a 10-year journey towards a "very different water system." Environment Secretary Dame Angela Eagle will bring the bill before Parliament, removing the existing 1–3% cap on government stakes in major water and sewerage companies. The move throws into sharp relief the prospect of a temporary nationalisation of debt-laden Thames Water, which has warned it may run out of cash before the year is out. Burnham attacked the present setup as one where "the shareholders never lose and the public never win."

Thames Water faces a £10 billion rescue takeover bid from lenders, with special administration — effectively temporary nationalisation — still on the table.

Burnham pledged mayors will gain new powers to hold water firms to account, with tougher penalties for repeat failures and loopholes on excessive bonuses closed.

'It stinks,' Burnham told conference, accusing water bosses of syphoning easy money while the public paid for sewage in the seas.