Reform and Lib Dem back more nationalisation

By Sir John Redwood on July 22, 2025

One of the most distinctive policies which the Lib Dems and Reform are adopting, is more nationalisation.

Both parties think the taxpayer should run the water industry.

LibDems want to convert the companies into public benefit concerns. Reform wants to buy a 50% stake in them with taxpayer money. The government says it would cost £100 bn to buy the whole industry or presumably around £50 bn for a half share. The Conservative Opposition and the government do not think this a good use of taxpayer money . They are against a big increase in government borrowing for this purpose when the state is already too much in debt.

The Lib Dems claim they do not need to nationalise. However, they want to put environmentalists on the boards, put the environment as a key aim, limit profits, control remuneration and returns to shareholders. This means removing shareholder rights and rewards under normal company law. Existing shareholders would expect compensation or buy out. Why would the private sector invest more in public projects if a government treats shareholders in that way?

Lib Dems and Reform support the renationalisation of rail being undertaken by government. Both wish to see Scunthorpe Steel renationalised. The government has not taken over the shares in steel but is starting an expensive intervention into the company.

If a government did buy out the Scunthorpe shares presumably for very little it would have to commit to large and continuing subsidies . In order to save new steel making it would need to shut the two ageing blast furnaces and reline with extensive maintenance probably quite soon. Maybe better to commit to building two modern blast furnaces and to allow MOD, rail and other state steel buyers access to the steel to provide some orders..

It is difficult to see the advantage of nationalising an old works when with less money you could co fund a new works with a partner that knows how to make and sell steel.

Both parties need to reconsider. Nationalised British Steel lost taxpayers a fortune and spent much of its time making people redundant and planning its next works closure. Nationalised water tipped plenty of sewage into rivers and the sea and did not even measure and time the discharges or tell us what it had done. Water quality and investment improved with privatisation.

ED - Catherine Blaiklock says Reform will bring England's first Moslem Prime Minister. John Redwood says Reform will renationalise. Farage will resign and let the system re-form as Reform.