AN­A­LYSTS AT MACQUARIE are scep­ti­cal over fu­ture gov­ern­ment plans to re­na­tion­alise key util­ity as­sets, in­clud­ing en­ergy and wa­ter. They es­ti­mate a pro­hib­i­tive £100bn bill for the UK tax payer to take own­er­ship of the na­tion’s wa­ter reser­voirs and sup­ply ne


plans, re­na­tion­al­is­ing vi­tal util­ity as­sets was among Labour’s pre­elec­tion pledges. Polls since the 8 June Gen­eral Elec­tion show a strength­en­ing of pub­lic sup­port for Jeremy Cor­byn’s party.

But Macquarie ar­gues that, even if Labour was to form a gov­ern­ment down the line, fi­nanc­ing this prom­ise would be hugely dif­fi­cult.

‘If the gov­ern­ment were to take on a £100bn in­vest­ment in this in­dus­try, this would need fi­nanc­ing, and would in­crease over­all cost of bor­row­ing for over­all debt,’ the re­search house says.

‘The gov­ern­ment al­ready has sig­nif­i­cant con­trol over the in­dus­try and reg­u­la­tor, Ofwat.’

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