Monday, February 12, 2018

Private water

The water industry was privatised in 1989, transferring the assets and personnel of the 10 water authorities into limited companies. Capital was raised by floating the companies on the stock exchange, accompanied by a one-off injection of public capital, the write-off of government debt and the provision of capital tax allowances.

Citing figures from the National Audit Office, the shadow chancellor said water bills had risen by 40% in real terms since privatisation of the industry in 1989. 

In 2016-17, the forecast average for water bills was £389 per household. 

McDonnell claimed that in 2017, privatised water companies paid out a total £1.6bn to their shareholders. Since 2010, the total was £13.5bn.

No comments: