Public ownership: a how-to guide
It's time to take back what we've lost, protect what we have and start creating the public services of the future.
Public ownership is vital to rebalancing the economy and putting people before profit. We can do it by bringing contracts in house as they come up for renewal, supporting local authorities to set up public companies and managing our national assets and infrastructure in the public interest.
The debate around public ownership has shifted. The country is on the path to public ownership - but what does it mean to bring our public services into public ownership, how do we do it, and what would it look like?
To work this out, we're talking to our friends who are experts in their sectors, and looking at models from around the world. Read our how-to-guide, and watch our Youtube series 'The Path to Public Ownership' to find out more.
1) Take back what we’ve lost
Let's bring water, energy, railways, buses, the Royal Mail and care work into public ownership so they work for all of us.
- Bring the private water companies in England into public ownership, turning them into new public water companies for each region. We can decide how much to compensate shareholders - and make sure to protect pensions.
- Turn the regulator, Ofwat, into an accountable government agency.
- Water is already publicly owned in Scotland and run by a not for profit company in Wales, but in England we have a private monopoly.
- Bring railway franchises in house one at a time, as they come up for renewal. There's no need to pay any compensation to train companies - when the contracts end, the services are brought into public ownership. The East Coast line example shows public ownership is more efficient.
- Keep Network Rail and its assets public.
- Gradually phase out the ROSCOs (the rolling stock companies) by buying trains directly on behalf of the public.
- Reverse the recent government ban on new local public bus companies.
- Help councils to set up their own municipal bus companies to compete with multinational companies.
- Give all local authorities the powers to franchise buses as we transition to public ownership.
- Buy back Royal Mail shares. Profits were £373 million a year when the 500 year old company was sold for £3.3 billion in 2015, so this would be a good deal for the public purse (see our research with the New Economics Foundation).
- Use the money saved on shareholder profits to treat workers properly and provide a better postal service.
- Enable councils to bring outsourced social care services in-house, pay a living wage and end 15 minute visits.
- Explore new models for care like the Italian cooperative model and the Buurtzorg model in the Netherlands.
- Move away from financialised residential care – build homes without the 12% profit rate.
2) Protect what we have
It’s time to protect the public services we have for the future. Our precious NHS, our schools and education system, our council services, other valuable public assets and our green spaces need to be held in common for our grandchildren.
- Pass legislation to reverse privatisation and protect our NHS for the future - the NHS Reinstatement Bill.
- Scrap the internal market.
- Stop Slashing, Trashing and Privatising our NHS in England, fund our health service properly across the UK.
- Put a stop to academies and free schools in England - education is better when it's public and accountable.
- Focus on teacher training and funding our schools properly.
- Stop privatising our student loans - students and the public lose out from sales.
- Bring outsourcing contracts in house as they come up for renewal - councils can save money and improve quality and flexibility by insourcing
- Increase capacity within councils and government to provide services in-house.
- Create new procurement rules on fair wages, the environment and the local economy.
- Stop risky and dangerous outsourcing of public services.
- Give UK Government Investments (UKGI) a new duty to manage our assets in the national interest, not sell them off.
- Require a referendum/public vote before any further sell offs.
- Enable councils to manage assets like public spaces and housing for public good. Stop selling off council housing (in Scotland they've already ended the policy of right-to-buy).
3) Create new public ownership
It’s time to bring public ownership into the 21st century. We need new models that can help create and support new services that work for all of us, not just the big corporations. Social media creates a public space that should be democratically accountable. Technology - like new driverless cars - needs to be harnessed for the common good.
This how-to guide is based on our manifesto - read more: