Labour uses 'sham' £90bn figure to oppose water nationalisation

Labour used "economically illiterate" analysis paid for by water companies to argue against nationalisation of the sector, the Guardian can reveal.

- Helena Horton

In an official letter to groups campaigning against sewage pollution, the cost of renationalisation was put at a staggering £90bn - whereas the Moody's rating agency estimated the sum would be £14.5bn.

The letter cites a report from 2018 by the Social Market Foundation, which was commissioned by United Utilities, Anglian Water, Severn Trent and South West Water.

Feargal Sharkey, a clean water campaigner and former Undertones frontman, said: "Who should the government believe? A sham of a report commissioned by four water companies or a report written by one of the world's market analysts and credit rating agencies whose whole business model is predicated on the robustness and accuracy of their data? Surely the government wouldn't make that mistake, would they?"