TodayIndependent. Non-partisan. Every figure sourced.
Population Decides
Latest polls

Hot issue: Water

Should water go back into public ownership?

On 29 September the government said it will repeal the ban on public ownership of water firms, starting a 10-year overhaul. Thames Water, with debts put at £20bn, says its money lasts until the end of the year. Bills rose about 5% in April.

£639average yearly water and sewerage bill in England and Wales from April 2026, up £33 (Water UK)
Give your answerFree. No account needed. Then see how Britain split.

The options

  1. Keep it private, but regulate harder

    Leave firms in private hands, bring in a tougher regulator and let investors rescue the failing ones.

    Backed by: ConservativesReform UK

    Pick this option in the game
  2. Closest to what the government is doing now

    Allow public ownership and take over failing firms

    Lift the ban on state ownership, give mayors more power and take control where firms fail, over a 10-year plan.

    Backed by: Labour

    Pick this option in the game

  3. Turn water firms into not-for-profit mutuals

    Put Thames Water into special administration and change all firms into customer-owned mutuals with no shareholders.

    Backed by: Liberal Democrats

    Pick this option in the game

  4. Nationalise the lot

    Bring every water and sewerage company back into full public ownership, run by the state.

    Backed by: GreensSNP

    Pick this option in the game

What happens next

  1. If firms stay private under tougher rules

    Investors fund the £104bn upgrade planned for 2025 to 2030, but bills rise by around 36% over the five years and investors expect a return on their money.

    Ofwat's 2024 price review
  2. If failing firms are taken into public control

    Special administration keeps the taps running. Lenders may take losses, but the state may have to fund repairs in the meantime, adding to public borrowing.

    Insolvency experts and the Treasury note
  3. If every water firm is nationalised

    A minister has warned the price could top £99bn. Supporters say it could cost far less if shareholders and lenders take losses, though that could be fought in court.

    Government estimate; public ownership campaigners dispute it
  4. If water firms become mutuals

    Profits stay in the business, as at Welsh Water, which has no shareholders. But Welsh Water still has sewage and performance problems, so ownership alone may not fix things.

    Supporters of mutuals; regulators' performance data
  5. If nothing changes

    Sewage spills carry on. There were around 450,000 spills from storm overflows in England in 2024, lasting about 3.6 million hours in total.

    The Environment Agency
  6. If public ownership adds to state debt

    Money spent buying firms or their debts is money not spent on schools or hospitals, though the state can usually borrow more cheaply than private firms.

    Fiscal experts on both sides

The arguments

The case for public ownership

  • Water is a natural monopoly. Customers cannot switch supplier, so supporters ask why shareholders should profit from it.
  • Firms paid out large dividends and took on heavy debt while leaks and sewage spills carried on.
  • The state can borrow more cheaply than private firms, so investment could cost bill payers less over time.
  • Supporters point to Scotland, where water is publicly owned, as proof a public model can work and keep average bills lower.

The case for keeping it private

  • Buying out the firms could cost tens of billions that would otherwise go on public services.
  • Before 1989, investment in state-run water was often cut when budgets were tight. Private finance has paid for big upgrades since.
  • Ownership is not the root problem; poor management and weak regulation are. Fix the regulator and the rules instead.
  • Publicly run and not-for-profit water elsewhere still has leaks and pollution, so nationalising may not mean cleaner rivers.

The trade-offs

Questions to ask yourself

Sources

  1. uk.finance.yahoo.com /news/pm-announces-law-allow-public-142501098.html
  2. libdems.org.uk /press/release/lib-dems-demand-burnham-overhauls-water-industry-in-f…
  3. moneysavingexpert.com /news/2026/01/water-bills-april-rise/
  4. weownit.org.uk /news/reform-uk-downgraded-in-our-political-scorecard/
  5. itv.com /news/meridian/2026-10-05/kemi-badenoch-claims-margaret-thatchers-pr…

Facts as of October 2026. Party positions reflect each party's current stated policy and may change.

Britain is split. Now you decide.

Pick your side on water, guess how the country answered, then see where you really line up with the parties.

Give your answer

More hot issues