John McDonnell: Nationalisation Will be “Cost-Free”


This morning, John McDonnell, a Shadow chancellor, said that the nationalisation programme of Labour would be “cost-free.”

Talking on Sky News, McDonnell defended the plans of Labour to take over principal industries, reiterating his claim that the policy will be able to pay for itself.

The Labour party has promised to nationalise the utilities, and the railways, when their franchises end.

Morgan Stanley has warned that the plan of the Labour party implies a government that is led by Jeremy Corbyn and it would be worse for investors than Brexit, echoing fears that were raised by the Confederation of British Industry, which has warned that investors will be “running for the hills” once Corbyn is elected.

A report from the European equity team of Morgan Stanley stated: “The UK is in the midst of a double whammy of uncertainty in the shape of Brexit and a fragile domestic political situation.

“Taken together, these two factors – which are interrelated to some degree – cast a long shadow over the policy backdrop and economic outlook of the UK.”

This week, Corbyn replied to Morgan Stanley on Twitter, posting a video in which he said that Labour was fighting against a “rigged” system.

“When they say we’re a threat, they’re right,” said Corbyn.