The privatisation of key UK industries has fuelled the cost of living crisis, damaged public services and left households worse off, the Green Party leader Zack Polanski has said.
‘Failed Experiment’
Polanski’s intervention follows a report by the thinktank Common Wealth, which revealed that since 2010 the public has been paying a “privatisation premium” of around £250 per household each year. The study also estimated that more than £200bn has been handed to shareholders since the sell-off of utilities and transport networks began in the 1980s.
“This report shows that privatisation has been one of the key drivers of the cost-of-living crisis and growing inequality,” Polanski said. “The Conservatives were the architects of this failed experiment, but the Labour government has done virtually nothing to change course.”
He accused ministers of leaving energy and water monopolies in private hands while “breaking up our health service and opening it up to private profiteers”.
Labour’s Position
During his successful leadership campaign in 2020, Sir Keir Starmer pledged support for “common ownership of rail, mail, energy and water”. Since taking office, however, Labour has scaled back its ambitions, ruling out the nationalisation of the big six energy firms, Royal Mail and privatised water companies.
The government has made some moves in the opposite direction: several failing rail operators have been brought back into public ownership, the national energy system operator has been re-nationalised, and a new publicly owned body, GB Energy, has been created to invest in renewables.
Even so, critics say the latest findings show Labour must go “further and faster” if it wants to address rising bills, poor services and the climate emergency.
Pressure from Unions
Paul Nowak, general secretary of the Trades Union Congress (TUC), said families could not be expected to “keep footing the bill for decades of failed privatisation”.
“From soaring water bills to crumbling rail services, the system is broken – and it is ordinary people paying the price,” he said.
He praised the government for its early steps, including GB Energy, but said more decisive action was needed: “That means delivering on its commitment for the biggest wave of insourcing in a generation and re-nationalising failing water companies like Thames Water – a textbook case of corporate mismanagement where profits have been prioritised over people and infrastructure.”
Calls from Campaigners
Campaigners argue that urgent measures are needed as winter approaches. Jonathan Bean from Fuel Poverty Action said it was “shocking” that the government was “pandering to private profit rather than delivering on their manifesto promise to bring down bills by £300”.
“Right now, the government could be legislating to clamp down on excess profits and deliver the savings they promised,” he said. “There is no time to lose.”
Historic Wealth Transfer
The Common Wealth report concluded that privatisation has “led to a historic transfer of wealth” from households to shareholders, with at least £193bn flowing to private equity funds, foreign holding companies and other investors since 1991.
Polanski said public ownership was the only way forward. “The Green Party was the only party unequivocally opposed to privatisation of public services and pro public ownership,” he said.
“We say water, energy and transport must be in public hands, and hands off our health service. This is the way to create a fairer, greener future for all and bring down bills.”
Outlook
The report has reignited the debate over the future of Britain’s privatised industries. While Labour insists its focus is on pragmatic reforms and investment in renewables, pressure is mounting from unions, campaigners and opposition parties for a broader shift back to public ownership.
As the cost of living crisis continues to squeeze households, the political and economic case for change is likely to remain at the centre of the debate.
