Water Industry ​Nationalisation ​in England?

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Water Industry ​Nationalisation ​in England?

Labour would nationalise the multi-billion pound water industry if elected, the BBC understands.

64d2386e0ee5473e8917cafb67568a5c.pngUnder proposals to be outlined in its manifesto, Labour would create nine new public bodies to run the water and sewage system in England.

By ending the practice of paying dividends to shareholders, party sources say bills would be reduced by around £100 a year per household.

Labour will also promise 30 hours free childcare for two to four-year-olds.

Jeremy Corbyn will unveil a "radical and responsible" plan for government, pledging to change the country and govern "for the many not the few".

He will vow to reverse the austerity of recent years but also to "manage within our means".

A draft version of the document, which was leaked last week, committed a future Labour government to taking the railways and the Royal Mail back into public ownership while also nationalising the electricity distribution and transmission networks.

Labour's plans would also see the water industry, which was sold off by the government of Margaret Thatcher in 1989, return to public hands.

If elected on 8 June, it would create nine new public bodies to run the water and sewage system in England and Wales, that would be publicly accountable, retaining the existing workforce.

Party sources say by ending the practice of paying dividends to shareholders and reducing interest payments on debt, bills would be reduced by around £100 a year per household - the equivalent of a cut in water bills of around 25%.

The industry would be taken into public ownership either by simply buying the shares of the existing companies or by a compulsory measure whereby companies would have to be given government bonds in exchange for the shares.

A Labour source said: "Under Labour, rather than answering to its shareholders out to make a quick buck at the expense of increasing household bills and worsening service quality, utilities will be accountable to the bill payer, helping ease the burden of those struggling with the cost of living crisis."

There are currently 10 major water and sewage companies in England and Wales.

Thames Water, the largest in terms of customers and value, has a market value of about £12bn. Its shareholders include the Canadaian pension fund Omers, the Kuwait Investment Authority and pension funds and institutions from across the world.

Companies listed on the stock market include Severn Trent, United Utilities and Pennon Group, which owns South West Water. They have combined market value of £17bn.

Read more: BBC

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