Policy Update – Renationalisation

The CBI and its members are passionate about building a more prosperous society across all regions of the UK. Nationalising swathes of the economy would hit savers, economic growth and harm users of public services. Combined with on-going Brexit uncertainty the prospect of re-nationalisation would harm the UK’s international reputation as a good place to do business.

Delivering one of the 2019 Roscoe Lectures at Liverpool John Moores University, CBI Director-General, Carolyn Fairbairn, recognised that the Labour Party was asking the right questions about the UK’s infrastructure, utilities and public services but said it proposes a solution that would be the biggest departure from economic consensus in thirty years and cost the country over £175 bn.

Read CBI’s warning on Labour’s renationalisation plans

In the speech, Carolyn argued that the lack of accountability and competition was the root cause of public dissatisfaction in industries the Labour Party had earmarked for public ownership. She went on to point out that history had shown nationalisation would do profound harm to the UK economy, the UK’s finances and the services we rely on. Instead of renationalisation, Carolyn said that consumers would be best-served by improvements to customer services, with lower bills and local decision making.

Read the full nationalisation speech

Carolyn acknowledged that the status quo is not perfect and highlighted three solutions to improve outcomes for consumers. Proposals include a ‘best price guarantee’ and a ‘dividends check’ which would see companies deliver for customers before shareholders benefit. The final proposal was to ensure ‘local benefits’, where a company providing a service in a region, town or city would draw upon the talents of that town or city by working with local businesses and providing apprenticeships and other opportunities for local people to work.

For more information, please contact [email protected]