MPs and mayors urge PM to convert failing water firms into not‑for‑profit cooperatives to keep control without raising public debt
Executive summary: Members of Parliament and metro‑area mayors affiliated with Andy Burnham told the prime minister that failing water firms should be restructured as not‑for‑profit cooperatives. The proposal seeks to give the public greater oversight of essential water services without increasing national debt, potentially reshaping the ownership framework of the UK water industry.
Who is involved: Labour MPs, metro‑area mayors (particularly those aligned with Andy Burnham), the prime minister’s office, and the struggling water utilities under discussion.
Likely next: The idea will likely be debated in parliamentary committees and could trigger a formal review by the water regulator Ofwat, with possible pilot schemes or legislation to enable mutualisation.
Labour politicians close to Andy Burnham have presented a “third way” proposal to the prime minister, advocating that struggling water companies be turned into mutual, not‑for‑profit cooperatives. The model aims to place the utilities under public control while avoiding additional sovereign debt on the government’s balance sheet. The suggestion comes amid ongoing debate over the performance and accountability of England’s privatized water sector.
Timeline
- — Turn failing water firms into not-for-profit cooperatives, MPs and mayors tell PM (The Guardian — Business)
Analysis — what this means
Likely next events
- Parliamentary select committee hearing on water sector reform scheduled for September 2026
- Ofwat consultation on mutualisation models expected by October 2026
- Possible pilot cooperative project in a distressed water company by early 2027
Sectors affected
- UK water utilities
- Public utility regulation
- Infrastructure investment
Regulatory implications
- Potential amendment to the Water Industry Act 1991 to allow not‑for‑profit mutual structures
- Review of public‑interest test criteria for water company licences
Historical parallels
- 1989 privatisation of England and Wales water industry under Margaret Thatcher
- 2018 Labour Party proposal to renationalise water services, which did not become law
- 2022 continued public ownership of Scottish Water, contrasting with the privatised model in England
Sources
- Turn failing water firms into not-for-profit cooperatives, MPs and mayors tell PM — The Guardian — Business
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