Thames Water is seeking to raise the funds it needs to avoid short-term nationalisation. Photograph: Maureen McLean/Rex/Shutterstock
‘Economically illiterate’ Defra letter sent to anti-sewage groups cites 2018 report commissioned by water companies
Labour used “economically illiterate” analysis paid for by water companies in order to argue against the nationalisation of the sector, the Guardian can reveal.
In an official letter recently sent to anti-sewage groups, civil servants cited a paper by the Social Market Foundation as a reason to avoid nationalisation as part of its review of the sector. The report from 2018 was commissioned by United Utilities, Anglian Water, Severn Trent and South West Water.
The letter, sent by the Department for Environment, Food and Rural Affairs (Defra) to the Rivers Trust, Surfers Against Sewage, River Action UK and Greenpeace states: “The Social Market Foundation calculated the likely cost of renationalisation to be £90bn, drawing on publicly available data from Ofwat, the London Stock Exchange and the annual accounts of the water companies. Renationalisation would impose a huge burden on the public purse at a time when public finances are already stretched.”
Sir Dieter Helm, a leading economist, called the analysis “economically illiterate”.
Moody’s rating agency has disputed this figure and estimated that nationalisation could actually cost £14.5bn – a fraction of the analysis amount.
Earlier this month, Steve Reed, the environment secretary, announced a review into the water companies and the regulators, but said nationalisation was firmly off the table. He said it would cost “billions of pounds” and would not solve the sewage crisis.
Medical staffers tend to patients at a hospital in Houston, Texas on August 18, 2021. (Photo: Brandon Bell/Getty Images)
“Our private, profit-driven system means that we are paying more for less,” said one progressive activist.
A report out Thursday shows that the United States’ for-profit healthcare system still ranks dead last among peer nations on key metrics, including access to care and health outcomes such as life expectancy at birth.
The new analysis from the Commonwealth Fund is the latest indictment of a corporate-dominated system that leaves tens of millions of people uninsured or underinsured and unable to afford life-saving medications without rationing doses or going into debt.
“Despite spending a lot on healthcare, the United States is not meeting one of the principal obligations of a nation: to protect the health and welfare of its residents,” the report states. “Most of the countries we compared are providing this protection, even though each can learn a good deal from its peers. The U.S., in failing this ultimate test of a successful nation, remains an outlier.”
People in the U.S., which spends roughly twice as much per capita on healthcare as other rich nations, “live the shortest lives and have the most avoidable deaths,” Commonwealth noted, pointing to frequent “denials of services by insurance companies” and other systematic defects of the American system, including massive administrative costs.
Meanwhile, insurance giants and pharmaceutical companies are raking in huge profits, benefiting in particular from the growing privatization of Medicare. More than half of the Medicare-eligible population in the U.S. is currently on a privately run Medicare Advantage plan.
“Our private, profit-driven system means that we are paying more for less,” progressive activist Jonathan Cohn wrote in response to the Commonwealth report.
Americans live the shortest lives and have the most avoidable deaths.
Note: To normalize performance scores across countries, each score is the calculated standard deviation from a nine-country average that excludes the US. See “How We Conducted This Study” for more detail.
Data: Commonwealth Fund analysis.
Source: David Blumenthal et al., Mirror, Mirror 2024: A Portrait of the Failing U.S. Health System — Comparing Performance in 10 Nations (Commonwealth Fund, Sept. 2024). https://doi.org/10.26099/ta0g-zp66
The Commonwealth Fund’s findings bolster progressives’ case for transitioning to a Medicare for All system that would provide comprehensive coverage to everyone in the country for free at the point of service. Studies have repeatedly shown that such a program would cost less than the immensely wasteful for-profit system—which is set to drive national healthcare spending to $7.7 trillion per year by 2032—while saving lives.
Commonwealth observed Thursday that while affordability “is a pervasive problem” in the U.S., Australia “offers free care in all public hospitals, and the nation’s universal Medicare system provides all Australians with coverage for all or part of the cost of [general practitioners] and specialist consultations and diagnostic tests, with additional subsidies available for private hospital care.”
“The U.S. continues to be in a class by itself in the underperformance of its healthcare sector,” the report continues. “While the other nine countries differ in the details of their systems and in their performance on domains, unlike the U.S., they all have found a way to meet their residents’ most basic health care needs, including universal coverage.”
Americans face the most barriers to accessing and affording health care.
Note: To normalize performance scores across countries, each score is the calculated standard deviation from a nine-country average that excludes the US. See “How We Conducted This Study” for more detail.
Data: Commonwealth Fund analysis.
Source: David Blumenthal et al., Mirror, Mirror 2024: A Portrait of the Failing U.S. Health System — Comparing Performance in 10 Nations (Commonwealth Fund, Sept. 2024). https://doi.org/10.26099/ta0g-zp66
With the U.S. presidential election less than two months away, neither 2024 candidate for the two major parties has outlined a detailed healthcare proposal thus far.
Former President Donald Trump, the Republican nominee, said during last week’s debate in Philadelphia that he merely has “the concepts of a plan,” while Harris—who once co-sponsored Medicare for All legislation in the Senate—said she “absolutely” supports “private healthcare options” and wants to “maintain and grow the Affordable Care Act.”
Just days after the debate, Sen. JD Vance (R-Ohio)—Trump’s running mate—said the Republican nominee prefers a system in which “a young American” and a “65-year-old American with a chronic condition” are not placed in “the same risk pools,” suggesting a rollback of the ACA’s protections for people with preexisting conditions.
“You can’t really say people with preexisting conditions are protected if they are in a separate insurance risk pool and can be charged exorbitant premiums,” Larry Levitt, executive vice president for health policy at the research group KFF, wrote in response to Vance’s comments.
Record fall in membership despite earlier claims of increases from right-wing figures
Labour has admitted it is only kept afloat by the money of the mega-rich, after yet another massive fall in party membership numbers – to a level lower than its peak under Ed Miliband and far below the almost 600,000 when Jeremy Corbyn was leader.
According to its latest official figures, the party suffered a net loss of 37,000 members, 9% of its total, by the end of 2023 compared to a year earlier – the biggest year-on-year loss since 2003 when Labour haemorrhaged members during Tony Blair’s illegal war in Iraq. Even the claimed latest membership of 370,000 is suspect according to party insiders, as Labour under Keir Starmer has long padded its figures by continuing to count lapsed members – and its records were long in chaos after outsourcing led to a massive hack and the freezing of its membership administration systems.
Leading right-wing Labour figures have repeatedly briefed that members were pouring in and numbers were rising, attributing this to Starmer. In fact, given Starmer’s deep personal unpopularity, it makes far more sense to attribute the collapse in membership to him, his support for Israel’s genocide, his cowardly assault on left-wing MPs and members and his dog-whistle red-Tory ‘policies’.
And the party has inadvertently admitted that it is only propped up by donations from the super-rich. Party general secretary David Evans has said that the party losing less than the expected £2.5m during the general election campaign was because of “an increase in high-value donations”. Under Corbyn, large numbers of ordinary people chipped in what they could afford – so many that Labour’s debts, grown huge under previous leaders, were wiped out.
Now, even kept afloat by billionaires – and clearly beholden to them, given Labour’s atrocious announcements penalising the poor since Starmer was ushered into Downing Street by the fascist Reform ‘party’ – Labour is still losing money, just less than it would have without the huge donors wanting payback for their investment.
Vote For Genocide Vote Labour.Zionist Keir Starmer is quoted “I support Zionism without qualification.” He’s asked whether that means that he supports Zionism under all circumstances, whatever Zionists do.
A tanker pumping out excess sewage from the Lightlands Lane sewage pumping station in Cookham, Berskhire which flooded after heavy rainfall, January 10, 2024
ENVIRONMENTAL groups called on the public today to mobilise this autumn and ramp up pressure on the government to tackle Britain’s water pollution crisis.
River Action, Surfers Against Sewage and Greenpeace are among the groups who will join the March for Clean Water in Central London on October 26.
It will mark the end of the first 100 days of the Labour government, and take place just days before Chancellor Rachel Reeves’s first Budget.
An escalating water crisis looms, driven by factors such as ageing infrastructure, lack of investment from water firms and industrial pollution.
More than 3.6 million hours of raw sewage discharges poured into rivers and seas last year — a 105 per cent increase compared with 2022.
Surfers Against Sewage paddle-outs involve local communities coming together to protest against water companies dumping sewage in the oceans and rivers they use for watersports and swimming. (Photo by Jack Taylor/Getty Images)
Ofwat is opening enforcement cases into four more water companies, meaning it is now investigating every single water and wastewater firm in England and Wales for the mismanagement of their networks and treatment.
The notices follow a what Ofwat described as a “detailed” analysis of information on firms’ environmental performance and data about the regularity of their spills from storm overflows.
The regulator believes the four firms may not be fulfilling their obligation to protect the environment and minimise pollution, meaning that it is now investigating all 11 water companies in England and Wales.
Investigations into Anglian Water, Northumbrian Water, South West Water and Thames Water, which last week was effectively placed into special measures by Ofwat, are ongoing from 2022, while Southern Water is still subject to monitoring following a case that dates back to 2019.
David Black, Ofwat’s chief executive, said: ““The fact that Ofwat now has enforcement cases with all 11 of the wastewater companies in England and Wales demonstrates how concerned we are about the sector’s environmental performance.
