Allies of Andy Burnham are warning against plans that would grant mayors oversight of water companies without providing the financial control needed to enact public ownership.

Key allies of Andy Burnham have cautioned the prime minister against retreating from promises to bring water companies under public control. The warning follows reports that the government is considering a plan to grant regional bodies oversight of water utilities, including the ability to question executives on sewage spills and billing. Critics argue that mere oversight, without the power to manage finances or ownership, fails to deliver on the commitment to place essential services in public hands.

Limits of Proposed Oversight

Mathew Lawrence, director of the Common Wealth thinktank, and Mark McVitie, former director of the Labour Growth Group, argue that regional oversight bodies lack the necessary authority to address systemic issues. They contend that without the power to ban dividend payments, stop financial extraction, or take services into public hands, local leaders would be burdened with responsibility for a system they cannot fundamentally reform. McVitie emphasized that public interest must be enforceable against the interests of monopoly operators. He noted that a functional system requires the ability to secure investment at reasonable costs and restructure operators that are no longer viable.

Upcoming Policy Decisions

The debate over water utility reform coincides with immediate challenges regarding the future of the financially struggling Thames Water. Andy Burnham is expected to release a 10-year plan in November that will further detail his administration's approach to the industry.