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

This massive movement of tens of billions of pounds to the shareholders of sold-off water, rail, bus, energy, and mail utilities occurs as households confront soaring bills, polluted rivers and seas, and costly and unreliable rail services and bus networks.

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

Attention on Utilities Sector

Latest attention has centered on the sold-off water industry, which has built up long-term debts of £73bn and distributed dividends of £88.4bn over the past 34 years, while presiding over record sewage discharges.

Major Findings from the Report

• Around £193bn has been paid to shareholders of bus, train, mail, energy, and water firms since the 1990s.
• Almost a quarter of the average energy bill in 2024 went toward company profits.
• Energy network firms recorded an operating profit margin of 55% between 2020-24, compared with 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 commercial 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 received 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 double as high under public ownership compared with the private era.

Financial Drain Persists

The analysis indicates that the transfer of wealth from the general population to shareholders has continued over the past decade. Since 2010, £114.6bn has been funnelled to shareholders of energy, water, rail, bus, and mail firms from customer bills and travel fares.

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

“The truth is that who controls and manages our vital services and infrastructure profoundly matters.”

Past Context

The study found that between 1981 and 1996, the rush to sell off key industries was faster and more extreme in the UK than in nearly any other developed economy.

During this period, the UK shed 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 lost public wealth faster during their transition from communism to capitalism.

Arguments for Public Ownership

Numerous experts argue that some form of public ownership or state control is required in key industries to enable medium- and long-term planning—not only 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 recently published survey, most Britons believe utilities and public transport should be run in the state sector.

In government, certain moves toward nationalisation have been made, including bringing select train operators back into public hands and creating publicly owned energy companies.

Examples of Effective State-Led Approaches

We see increasing examples of public ownership models that provide value for money. In certain regions, local councils own majority stakes in bus companies, and unified transport systems are being rolled out under public control.

Regulatory View

A financial regulator for the water sector commented that companies must comply with all relevant legislation and standards when paying dividends, and those underperforming or facing financial challenges may need to limit or cease dividend payments.

To calculate the dividends paid across these sectors, economists examined dividend data from financial databases, company reports, academic literature, and regulatory bodies.