Disadvantages of Privatisation
1. Natural Monopoly
The most efficient number of firms in some industries, such as tap water is one. Therefore it is better to have a public monopoly rather than a private monopoly which can exploit the consumer.
2. Public Interest
e.g public services should not be run as profit making bodies. For example, in the case of health care, it is feared privatising health care would mean a greater priority is given to profit than patient care.
3. Public borrowing will increase in the long run because the government no longer gains the profits
4. Problem of regulating private monopolies
5. Rail Privatisation in the UK unsuccessful