What is nationalisation?

Nationalisation is when the government takes a private company or industry into public ownership. The state then runs it, often through a public body, instead of private shareholders. The opposite is privatisation. In the UK, railways, steel and water have all been debated as candidates for nationalisation in recent years.

After 1945 the Attlee government nationalised coal, railways, steel, gas, electricity and the Bank of England. By the 1970s many key industries were publicly owned. From the 1980s the Thatcher governments privatised many of them, including British Telecom, British Gas, water and electricity. Rail was privatised in the 1990s. Supporters said privatisation would bring investment, efficiency and competition. Some, like water, became regional monopolies.

Some industries have since returned to state hands. Northern Rock was nationalised in 2008, and the state took large stakes in banks during the financial crisis. Under the Passenger Railway Services (Public Ownership) Act 2024, rail franchises are returning to public ownership as contracts end. South Western Railway was first, in 2025. In 2025 the government also took control of British Steel's Scunthorpe works.

The cost of nationalisation depends on whether the state buys shares, pays compensation or waits for contracts to expire. Supporters argue public ownership puts essential services before profit. Opponents argue it burdens taxpayers, reduces efficiency and blunts innovation. Water is a major current debate, after large bills, debts and sewage spills. Thames Water's financial troubles brought the issue to a head.