Andy Burnham is facing a possible revolt from the country’s mayors over concerns for his plans to give them “stronger control” of water companies.
The Prime Minister has been cautioned that handing them more responsibility will put them “in the firing line” with voters.
According to The Telegraph, some mayors are fearful of the “political cost” to them if they are held responsible for company failures.
Speaking at the Labour conference last week, the Prime Minister pledged to abolish Margaret Thatcher’s “ideological ban on public ownership” of water companies.
He said: “Water is a symbol of what has gone wrong with Britain. A service where the shareholders never lose and the public never win.
“Some have siphoned out easy money, while the public picked up the bill for the sewage in our seas. It stinks. I will not allow it to continue like this.”
Mr Burnham announced: “A strengthened Water Bill will start a 10-year journey to a very different water system. It will strengthen public control.
“Mayors will have new powers to hold water companies to account, with tougher consequences for those which repeatedly failed.
Andy Burnham faces Labour revolt as mayors fear water control will put them in ‘firing line’
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PA
“It will close the loopholes used to pay excessive bonuses where private companies serve the public interest.
“We will support them, but the consequences will be clear for those who do not, including taking back control or public ownership.”
Mr Burnham’s plan would create new “water boards” to oversee companies, staffed by mayors, civil servants and customer representatives.
It is understood that the plans have been discussed in meetings between regional mayors and officials in No10 North, with some concerned representatives calling for a rethink of the reforms.
Andy Burnham pledged to end Margaret Thatcher’s ‘ideological’ ban on public ownership of water companies
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PAA source close to the discussions told The Telegraph: “There is a worry amongst some mayors that taking responsibility for water would put them in the firing line.
“They want to be part of the solution rather than part of the problem, but the failings of these companies are really serious, and some of them are a bit more worried about the political cost.”
The full details of the plan are expected to be unveiled by Mr Burnham before Christmas, as part of his “10-year plan”.
Labour’s Sagal Abdi-Wali, who defeated Green Party leader Zack Polanski in Thursday’s Holborn and St Pancras by-election, used her acceptance speech to call for Thames Water to be nationalised.
She said: “Across this campaign I’ve spoken about Thames Water and it’s appalling service, and I want to see Thames Water brought into public ownership so that it works for people and not profit.
“As MP, I will fight for a water system that puts public interest first and gives people the confidence that essential services are being run for them.
“I’ll make sure that what ultimately happens is in the best interest of the public and the service that’s delivered to the public is the best thing as well.
“So that they’re not seeing what we’ve seen here in Camden, which is continuously being flooded by Thames Water and then people’s bills going up after they’ve had their homes and their businesses destroyed. So I think it’s the right thing.”