British Steel is heading for nationalisation – against the will of the government. This is an important point, because it speaks to dogma colliding with practical reality. Here is a private company defeated by the “sink or swim” laws of the free market ideology that produced it, demanding instead that taxpayers come to its rescue – by threatening to make shortsighted business decisions with damaging consequences for the country’s future. What happened in Scunthorpe is not an outlier in the failed experiment of privatisation, and the government’s emergency takeover tells us that public ownership is a realistic solution if there is a political will.
Here’s another example: water. Even the City editor of the Financial Times – hardly a bastion of radical socialism – concluded that its privatisation looked like “little more than an organised rip-off”. Since privatisation in 1989, water companies have piled up more than £60bn in debt, while our water bills have continued to rise. Yet despite rivers and seas being blighted with raw sewage, and the loss of 1tn litres of water from leaky pipes in 2021 alone, shareholders raked in more than £85bn since this most basic of human necessities was flogged off.
