SIR – Privatisation was pitched in the 1980s as a solution to systemic weakness in public services and the British state, but now we’re left with a business model that benefits nobody.
As costs rocket and quality plummets, polling routinely shows public support for nationalisation – but not every firm follows the same blueprint. Unlike Thames Water, Welsh Water runs a non-profit model solely benefiting the public, returning over £440 million in customer dividends and enjoying a much higher credit rating. The contrast is rooted in the choice of social enterprise over traditional business models.
Problems of privatisation are fundamentally linked to ownership, with shareholders putting profits before people and assets being hoarded rather than shared. Other business models expand ownership to workers, customers and wider communities, reinvesting profits to improve services and reduce costs.
Only a crisis, actual or perceived, brings about real change – and Thames Water presents an opportunity to do better business.
Lord Adebowale (Crossbench)
Chairman, Social Enterprise UK
London E1
