Burnham's Blueprint to Reclaim Public Control of Utilities

On 21 June 2026, the policy paper *The Productive State* was released as Andy Burnham became MP for Makerfield. Drafted by Mathew Lawrence, it proposes shifting utilities from private to public control via a special administration regime for distressed firms, a bond-for-share exchange for solvent companies, and the creation of state-owned corporations. The authors stop short of blanket nationalisation.

The Guardian

The essay argues that four decades of privatisation have created a “privatisation premium”, a hidden tax that lifts water, energy, transport and care bills. It links this premium to the cost-of-living crisis, noting that essential expenses now consume a large share of many households’ income, prompting government subsidies.

The Guardian

Policy adviser Miatta Fahnbulleh called the paper an “important contribution” to fixing the economy and stressed the unaffordability of essentials. Labour peer Stewart Wood described it as a “valuable contribution” to a social-democratic vision. MP Yuan Yang urged bolder measures for the cost-of-living crisis, and Mainstream coordinator Luke Hurst warned Labour cannot be “business as usual” and must present a transformative platform.

The Guardian

Financial markets have reacted with alarm, fearing that the interventions could disrupt ownership structures and spark legal disputes, especially over the bond-for-share mechanism. Analysts see the proposal as a potential source of valuation uncertainty for investors.

The Guardian

The paper proposes three tools: (1) a special administration regime to place distressed utilities such as Thames Water under public management; (2) a bond-for-share exchange that issues bonds to acquire equity in solvent firms, requiring new legislation and likely legal challenges; (3) state-owned corporations financed by borrowing to compete with private providers.

The Guardian

The essay describes the “privatisation premium” as a regressive hidden tax that transfers wealth from households to investors. It also states that for millions, essential expenses now consume such a large share of income that “insecurity has become a permanent condition.”

The Guardian

The authors note that a bond-for-share exchange would need new legislation and expect legal challenges. A ten-year roadmap may start with public control of Thames Water and later include energy transmission firms such as National Grid.

The Guardian

• “For millions of households, the basic non-negotiable expenses of life – rent, energy bills, water charges, transport fares, the cost of care – now consume so large a share of their income that insecurity has become a permanent condition,” — *The Productive State* essay

The Guardian

• “The essentials that everyone needs to survive – a decent home, clean water, electricity, transport – have become unaffordable for too many.” — Miatta Fahnbulleh, policy adviser

The Guardian

• “The ultimate goal of The Productive State approach is … an economy … in which the essentials of life are treated as rights rather than revenue streams, and society builds the abundance, security, and stability it currently lacks,” — *The Productive State* essay

The Guardian

• “business as usual … We need a much more transformative offer and real debate within the party about our platform and priorities.” — Luke Hurst, Mainstream national coordinator

The Guardian