Prime Minister proposes legislation to enable public ownership of water utilities

At the Labour conference, the Prime Minister announced a ten-year strategy to reshape the United Kingdom’s water sector, beginning with a bill that would scrap the long-standing ban on public ownership of water companies. The legislation could lead to a temporary nationalisation of Thames Water as the government evaluates a £10 billion rescue offer from lenders. While the Department for Environment, Food and Rural Affairs says all options are still being examined, the bill would give mayors new authority to hold water providers accountable and impose tougher sanctions on firms that repeatedly underperform.

It also seeks to close loopholes that allow excessive executive bonuses. The Prime Minister framed water as a symbol of broader systemic failures, arguing that private shareholders have profited while the public bears the costs of sewage pollution.