# VI – The Economic Consequences of Privatisation: Britain Sells Itself Short By Gary Pickett
The Economic Consequences of Privatisation in Britain isn’t just about handing industries over to the private sector—it’s about selling the nation’s future. Britain has sacrificed job stability, economic sovereignty, and affordable services by shifting critical industries to profit-driven corporations, often controlled by foreign shareholders. And for what? Rising costs, declining service quality, and a loss of national control.
Profits Over People: The Cost of Privatisation
Economic Consequences of Privatisation will hit consumers where it hurts: rising bills and poor services. Take water companies, for example. Since their privatisation, leaks and disruptions have plagued the system, and customers are hit with higher rates. Meanwhile, executives pocket bonuses and shareholders see their profits soar.
Contrast this with France and Germany, where utilities remain largely under public control. France’s Électricité de France (EDF) ensures affordable and reliable electricity, while Germany’s public water utilities prioritise quality and sustainability over quick cash grabs.
Foreign Ownership: Profits Leave, Problems Stay
Selling British industries to foreign companies doesn’t drain resources—it siphons money out of the country. Foreign shareholders pocket the profits, leaving little for local jobs or infrastructure reinvestment. When Kraft Foods bought Cadbury, a British treasure, jobs vanished, and production was outsourced.
In contrast, countries like Italy and Spain have policies to block such moves. Italy’s “Golden Power” decree allows its government to veto foreign takeovers, ensuring strategic industries remain Italian. Spain similarly shields key sectors from foreign control.
Job Losses and Community Collapse
Privatisation often involves mass layoffs. Foreign owners slash costs by streamlining operations, leaving British workers cold. The steel industry is a prime example: Plant closures have devastated communities that have relied on these jobs for generations.
Norway shows a better way. Keeping key industries under state control, such as energy giant Equinor, provides stable, well-paying jobs and reinvests profits into the nation.
Energy in Foreign Hands
Selling the National Grid to foreign investors was a monumental mistake. Britain handed its energy infrastructure to companies focused on profits, not national security. Who guarantees these foreign entities will prioritise Britain’s needs in a time of geopolitical tension?
France avoids such risks by keeping its energy grid under state control. RTE, its transmission operator, ensures that decisions benefit the nation and balance profitability with public service.
The Railways: A Chaos of Costs and Delays
Britain’s railways, once the world’s envy, have become a commuter’s nightmare. Privatisation has brought skyrocketing ticket prices, unreliable service, and overcrowded trains. Meanwhile, profits go straight to shareholders, leaving frustrated passengers stranded on platforms.
Japan, by contrast, keeps its railways tightly regulated. The Shinkansen (bullet train) set global standards for punctuality, affordability, and efficiency. It’s a stark reminder of what Britain has lost.
Falling Behind in Telecommunications
The privatisation of British Telecom marked Britain’s decline in telecommunications. Once a leader in innovation, Britain now lags in global internet speed rankings. Foreign competition and a profit-first mentality have left the nation struggling to catch up.
South Korea, on the other hand, invests heavily in its telecommunications infrastructure. With state-of-the-art internet speeds and broad accessibility, it proves the economic benefits of strategic public investment.
Strategic Control: What’s at Stake
Economic Consequences of Privatisation isn’t just a financial mistake—it’s a national security risk. Industries like nuclear power, aerospace, and telecommunications play vital roles in Britain’s defence. Allowing foreign ownership in these sectors compromises sovereignty and leaves Britain vulnerable to external pressures.
China and the United States know better. China retains control over critical sectors to align them with national priorities, while the U.S. uses laws like the Defence Production Act to intervene when national security is at stake.
Lessons From Abroad
Britain’s privatisation spree contrasts sharply with more innovative strategies abroad. Germany publicly controls energy and transport systems to serve its citizens, not shareholders. France protects its cultural and economic identity through state ownership of iconic brands. Even Norway demonstrates how public ownership delivers stability and growth.
The Cost of Dependency
Britain risks becoming dependent on foreign powers for essential services by selling off its industries. This dependency undermines its economic independence and political freedom.
India, however, charts a different path. Through its “Make in India” initiative, it prioritises domestic production and ownership in critical industries, proving that self-reliance pays off.
Time to Reclaim Sovereignty
Britain’s economy is at a crossroads. Rising costs, job losses, declining service quality, and dependency on foreign powers paint a bleak picture of privatisation’s legacy. But it’s not too late to change course.
By learning from countries that have balanced profitability with public interest, Britain can rebuild its industries, protect its workers, and restore its global competitiveness. The real question is whether Britain will take bold action—or keep selling its future for a quick payday.