Critical national infrastructure (CNI) refers to the essential assets, systems, and networks whose loss or compromise would severely disrupt the delivery of vital services, threaten national security, or undermine the functioning of the state. According to the UK government, CNI includes sectors such as energy, water, transport, communications, health, defence, emergency services, finance, food, government, chemicals, civil nuclear, space, and more. These sectors are fundamental to the country’s security, economy, and public welfare, and their protection is paramount. Renationalising these sectors should be strongly considered.
Historical context: nationalisation post-World War II and subsequent privatisation
After World War II, under Clement Attlee’s Labour government, the UK undertook widespread nationalisation of key industries to rebuild the economy and ensure public control over essential services. This included coal, railways, steel, electricity, gas, and water sectors. Nationalisation aims to secure equitable access, coordinated investment, and safeguard national interests in critical sectors.
However, from the late 1970s, the Conservative Party, influenced by free-market ideology, pushed for privatisation. The first formal framework for this was The Ridley Plan, drafted by Conservative MP Nicholas Ridley, Baron Ridley of Liddesdale, a founding member of the Selsdon Group. The plan advocated transferring public enterprises into private ownership to reduce government intervention and promote market efficiency. It became a blueprint for the wave of privatisation that followed.
Privatisation was a consistent feature of Conservative Party manifestos from 1979 through to 1992, as they proposed selling British Telecom, British Gas, water companies, electricity boards, and parts of transport infrastructure. This ideological shift reshaped the ownership and management of the UK’s critical infrastructure and, as we will see, has had profound consequences.
The Royal Mail privatisation
Royal Mail was converted into a public limited company under Tony Blair and Gordon Brown’s Labour administration. An attempt to rename it Consignia plc failed due to public and operational backlash, highlighting the challenges of transforming a public service into a commercial entity. In July 2013, Vince Cable announced Royal Mail’s flotation on the London Stock Exchange, with postal staff entitled to free shares. A new holding company, Royal Mail plc, was established in September 2013, ahead of its IPO in October 2013. The company operated through two divisions: UKPIL (UK Parcels, International & Letters) and GLS (General Logistics Systems), with Royal Mail Group Limited continuing as a wholly-owned subsidiary managing UKPIL.
During the 2010 coalition government, the Conservative manifesto did not mention Royal Mail privatisation, but the Liberal Democrat manifesto proposed selling 49% of Royal Mail to raise investment funds, retaining 51% ownership split between an employee trust and the government, and keeping Post Office Ltd fully public. This reflected a mixed approach by the political parties to public ownership and market participation.
In July 2022, the holding company changed its name to International Distributions Services (IDS) plc, with plans to potentially separate GLS from Royal Mail. In December 2024, the UK government approved the £3.6 billion sale of IDS to Daniel Křetínský’s (a Czech billionaire businessman and lawyer) EP Group, marking the first time Royal Mail came under foreign ownership. The deal included commitments to retain the universal service obligation, UK headquarters, and tax residency. Despite concerns over declining letter volumes and Křetínský’s Russian business ties, the agreement, supported by unions, aimed to stabilise and reform Royal Mail. The acquisition was completed in April 2025.
Given Royal Mail’s critical role in national communications and security, many argue it should be renationalised to safeguard national interests while maintaining competition to ensure service quality and innovation.
Current moves in transport nationalisation
The Labour government is actively nationalising railway services through Great British Railways, consolidating passenger operations under public control. Network Rail, responsible for infrastructure, has been publicly owned since 2002 after the collapse of Railtrack Plc, with the Public-Private Partnership (PPP) period ending in 2015.
Regarding bus services, the government has introduced the Bus Services (No. 2) Bill 2024, which seeks to remove the existing prohibition on local authorities in England establishing new municipal bus companies – a power already exercised in Wales and Scotland. However, as of mid-2025, this legislation has not yet received Royal Assent and is still progressing through Parliament. Therefore, local authorities in England currently do not have the legal authority to own or operate bus companies, but this is expected to change once the Bill becomes law.
Why the National Grid must be renationalised
The National Grid, critical for energy transmission, remains privately owned and listed on the London Stock Exchange, with a secondary listing on the New York Stock Exchange. This exposes the UK to foreign influence and market volatility. While Great British Energy was established to promote public ownership in energy generation, it notably excludes National Grid infrastructure. Renationalising the National Grid would restore government control over energy security and infrastructure investment.
Renationalising National Gas
UK gas infrastructure is owned by a number of private entities including Macquarie, BCI, and National Grid. Renationalising this infrastructure would enhance energy security, reduce profit-driven inefficiencies, and enable strategic investment aligned with national priorities.
The case for renationalising the water industry
England’s water industry was privatised in 1989, unlike many countries where water remains publicly owned. Privatisation has led to environmental scandals, including raw sewage discharges into rivers and coastal waters, causing public health risks and ecological damage. In 2022, MPs voted 265 to 202 against an amendment to the Environment Bill that would have required water companies to prevent raw sewage discharge. In 2023, Labour’s Shadow Environment Secretary Jim McMahon called for a Commons debate on a Water Quality (Sewage Discharge) Bill to impose automatic fines on water companies, but it lacked Conservative support.
Renationalisation would reduce costs, waste, and fraud by eliminating excessive executive bonuses and shareholder profit extraction. Profits would be reinvested into infrastructure, benefiting taxpayers and ensuring sustainable water management.
Public opinion on nationalisation
Public support for nationalising utilities and public transport has grown significantly in recent years. A YouGov survey from June 2024 showed that 76% of Britons support railway nationalisation, up from 60% in 2017. Support for nationalising water companies has risen sharply to 82%, reflecting public anger over sewage pollution and rising bills. Energy company nationalisation support increased to 71%. Bus company nationalisation also gained support, with 66% favouring public ownership.
This broad support spans political lines, with majorities of Conservative, Labour, Liberal Democrat, and Reform UK voters backing nationalisation of railways, energy, and water companies. The main driver behind this support is a desire for public services to be accountable to taxpayers rather than shareholders, alongside concerns over rising costs and service quality.
Labour’s hesitation and the “Red Tory” shift
Although Labour is advancing rail nationalisation, its reluctance to renationalise water, gas, and energy infrastructure undermines national security and public welfare. This cautious stance reflects a “red Tory” shift – blending traditional Labour social concerns with market-friendly economic policies – that risks weakening both public trust and the effectiveness of infrastructure policy.
Renationalising Critical National Infrastructure is essential not only to safeguard security and enhance public service quality but also to pave the way for closer economic integration through rejoining the European Economic Area. Temporary membership of the European Free Trade Association (EFTA) could act as an interim step, facilitating regulatory alignment and encouraging investment crucial for building resilient infrastructure. This approach represents one method of speeding up the process for the UK to fully rejoin the European Union.
What would reforming public procurement mean?
Ending excessive contracting out and reforming public procurement is essential to reduce corruption, waste, and misuse of public funds. Companies involved must be deeply vetted and possess strong financial records to ensure effective and transparent use of public money.
The role of advocacy groups
Organisations like We Own It have exposed a number of privatisation failures, such as Thames Water’s financial instability requiring costly bailouts. They advocate for public ownership to prevent such crises and ensure infrastructure serves the public interest.
Conclusion
The UK’s critical national infrastructure underpins national security, economic stability, and public welfare. Decades of privatisation have exposed the country to financial instability, environmental harm, and security vulnerabilities. Renationalising key sectors – including energy, water, transport, and communications – is a pragmatic and necessary step to restore public accountability, reduce costs, and strengthen resilience against emerging threats. This approach secures essential services for all citizens and protects the UK’s future in an increasingly uncertain world.
Private ownership of critical infrastructure poses risks amid ongoing geopolitical tensions, particularly involving Russia and China, who might seek to sabotage UK assets. The UK government’s 2025 National Security Strategy highlights the need to protect infrastructure from cyber and physical threats, underscoring the importance of state control or stringent oversight of CNI.
