Labour will track investors to Hong Kong in nationalisation drive
Labour’s shadow chancellor will pursue investors to Hong Kong if necessary in its bid to nationalise Britain’s swathes of the UK’s infrastructure.
John McDonnell said his party would find a way to wrestle shares off those who try to hide behind international treaties.
Read more: Labour plans to nationalise industries will cause ‘profound harm’ to UK economy, says CBI chief
Several investors have moved their stakes in water companies to Hong Kong to protect them from Labour’s plans. They hope international agreements will save them from selling.
However, in an interview with the Sunday Times, McDonnell said he would take “appropriate action” to ensure a Labour government could nationalise these shareholdings.
“We’ll make sure we follow full legal advice,” he said. “We are trying to test everything we do to destruction.”
His plan also includes bringing Royal Mail and the energy networks under public ownership.
“There are no tricks up my sleeve – this is what we’re going to do,” he said. “This is the limit of our ambition when it comes to nationalisation.”
McDonnell promised to “adequately” compensate investors, adding “we will not be ripped off any more.”
The plans are expected to cost at least £176bn, according to figures from the Centre for Policy Studies.
Read more: Labour’s nationalisation plans are a risk to London’s investment appeal
The shadow chancellor said that the plans would not come with any net costs, as a Labour government would raise debt against the assets. However the plans have sparked worries that investors would be scared off government bonds.
“I don’t think there’ll be any dearth of people coming forward for those government bonds,” he said. “I think we’ll have stability [in gilt yields] because we’re delivering what virtually every business organisation is clamouring for, which is stable, long-term investment.”