An independent think tank published new research showing what Labour’s plans for renationalisation would cost. An independent report published by the Centre for Policy Studies shows that Labour’s plans for renationalisation would cost the taxpayer at least £176 billion.
The report also found that Labour’s policies would cost each tax payer the equivalent of £6,500, calculated per household.
John McDonnell has refused to accept the news. However, when questioned on the Andrew Marr Show yesterday he was unable to offer an alternative figure, instead suggesting MPs would “determine the price”. He said, “Parliament will determine the conditions for the future […] Parliament will determine the price”.
This independent study shows how Labour’s reckless policies would devastate confidence in the UK economy, causing investors to take their business elsewhere, meaning a lower tax take, less money to spend on public services, fewer jobs, spiralling debt, and more money wasted on debt interest.’
The report’s author and deputy director of the CPS, Daniel Mahoney, commented:
"Labour refuses to cost its plans for renationalisation, and it’s easy to see why. It would require at least £176bn in borrowing, the equivalent of £6500 for every household. This would be an expensive gamble with a huge opportunity cost.
"John McDonnell’s claim that bills will fall by £220 after nationalisation does not stand up to scrutiny. By his own admission, any profits from the industries would end up going to pay debt interest, so how can they be used to lower the cost of bills? And this does not account for the fact that these industries will, in all likelihood, become less efficient.
"It is also deeply concerning that Corbyn and McDonnell appear to be planning to seize assets below their commercial value. If Labour pursued this, business confidence would slump, confidence in the government would plummet and pension funds - which are big investors in the utilities sector - would end up particularly badly off."
The full Centre for Policy Studies report can be accessed here.