Burnham calls Cunliffe review “limited” but admits privatisation is difficult to reverse

(by Verity Mitchell)

Andy Burnham’s first formal comments to Parliament on water revealed his continuing dissatisfaction with the industry. He highlighted his belief that “it’s an industry where the shareholders never lose and the bill payers never win,” stating “[it is] run in the private rather than the public interest”.

Burnham also said that the independent review into the water sector by Sir Jon Cunliffe in 2025, which did not recommend nationalisation, was “limited” and that the Government should “look at all possible solutions for the water industry.”

He also made critical comments about the recent performance of water companies: “Too many areas have seen water supplies disrupted this summer, due to a lack of reservoir capacity…. Water companies are failing to rise to the climate challenge.” He also stated that: “Our tourism industry is damaged by too many sewage spills.”

Despite the negative comments, he appeared to dismiss industry re-nationalisation. “It's a very regrettable situation that the privatisation of water has left us in a position where we're going to find it very difficult to reverse.”

He added: “Later this year, our ten-year plan for Britain will set out plans for stronger public control over these essentials, making them work for people and places again.”