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Research indicates that the public have paid almost £200bn to private investors who own key British industries since their privatisation.

This substantial movement of billions of pounds to the owners of privatised water, rail, bus, energy, and mail utilities occurs as families face soaring bills, contaminated rivers and seas, and expensive and unreliable trains and bus networks.

Consequently, citizens have been paying a “sell-off premium” of approximately £250 per home per year since 2010 alone.

Focus on Water Industry

Recent scrutiny has focused on the sold-off water sector, which has built up long-term debts of £73bn and paid out dividends of £88.4bn over the past 34 years, at the same time presiding over record sewage discharges.

Key Findings from the Report

• Approximately £193bn has been transferred to shareholders of bus, train, mail, energy, and water firms since the 1990s.
• Nearly a quarter of the typical energy bill in 2024 went toward company profits.
• Energy network companies achieved an operating profit margin of 55% between 2020-24, versus a FTSE 100 average of 15%.
• Half of the rail industry's income in 2023-24 came from taxpayers via explicit or indirect subsidies, yet profits went to shareholders.
• One in five privately-run bus services have vanished since 2019.
• Rolling stock companies paid dividends amounting to 102% of their post-tax profits over the past eight years.
• Directors earned pay packages totaling over £662.8m between 2020-24 across water, rail, mail, bus, and energy companies.
• Energy investment as a share of GDP was twice as high under public ownership compared with the private era.

Financial Drain Continues

The analysis shows that the diversion of wealth from the public to shareholders has persisted over the last decade. Since 2010, £114.6bn has been funnelled to shareholders of energy, water, rail, bus, and mail companies from customer bills and travel fares.

This amounts to £7.2bn per year in total, or roughly £250 per home annually—a clear “sell-off premium.”

“The truth is that who owns and controls our vital services and infrastructure significantly matters.”

Past Background

The research found that between 1981 and 1996, the rush to sell off key industries was more rapid and more radical in the UK than in almost any other advanced economy.

During this period, the UK lost gross public wealth at a rate of 7.4% of national income per year for 15 years. Among rich world economies, only Russia, Hungary, and the Czech Republic shed public wealth faster during their shift from communism to capitalism.

Calls for State Control

Many experts contend that some form of common ownership or nationalisation is required in key industries to enable mid- and long-term planning—both to meet climate targets but also to ensure systems are resilient enough to withstand climate disruptions.

“Virtually all wealthier democracies have mail, transport, energy, and water in state ownership. We still do not.”

Popular Sentiment and Government Approach

Per a recent survey, most Britons believe utilities and public transport should be run in the public sector.

Since taking office, certain moves toward nationalisation have been taken, including bringing select train operators back into state hands and creating publicly owned energy entities.

Instances of Successful Public Models

There are growing examples of public ownership models that offer value for money. In some regions, local councils own majority stakes in bus companies, and integrated transport systems are being rolled out under public management.

Oversight View

A financial regulator for the water industry commented that companies must comply with all applicable legislation and standards when paying dividends, and those failing to deliver or facing financial challenges may need to limit or eliminate dividend payments.

In estimating the dividends paid across these sectors, analysts reviewed dividend data from financial databases, company statements, academic literature, and regulatory sources.