Nationalisation of public services could save £13billion every year
Public ownership of rail, water, energy, buses, Royal Mail, broadband and the
NHS would save the UK nearly £13billion every year, a study has found. Research based on studies by Greenwich University in south east London, the Transport for Quality of Life and the Centre for Health and the Public Interest, has helped the group pinpoint savings to pay for a “public services upgrade.”
The savings are calculated by comparing the current cost of dividends and interest paid by the private companies with the cost of refinancing the current equity and debt with debt raised by issuing government bonds. Professor David Hall, Director of the Public Services International Research Unit (PSIR) at Greenwich University, said: “Based on intensive empirical research, this paper shows that public ownership of utilities would result in annual savings of just under £8billion – so nationalisation would pay for itself in less than seven years.
“Nationalisation would cost less than £50billion if shareholders are compensated for the amount they have actually invested, rather than costing the country nearly £200billion as claimed by the CBI last month. UK law does not require that they be paid the ‘market value’, and it is up to parliament to decide on a case by case basis the appropriate amount of compensation.”