Labour’s nationalisation price tag would start at £196bn, CBI says

John McDonnell

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Shadow Secretary John McDonnell said the nationalization plan for labor is cost neutral

According to the UK Industrial Coalition, the nationalization plan for labor will cost at least £ 196 billion.

The employer group said the prepaid costs of managing water and energy utilities, train companies and royal mail are the same as all income taxes paid by the British people for a year.

According to the CBI's analysis, the total budget was £ 144 million and the total budget amounted to £ 61 billion.

A Labor Party spokesman said it was a "mismatched frightened person" by the CBI.

The CBI's report, released on Monday, estimated that the debt would increase by 10.7 percent, bringing the industry back to public ownership.

Research shows that debt levels will rise to 94{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} of GDP, the highest level since the 1960s, and will cost about £ 2 billion per year.

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In addition, under Labor's plan, savers and pensioners claimed they could lose about £ 9 billion in holdings.

The CBI analyzes based on the following nationalizations:

  • Nine water and sewage companies and seven water companies in the UK
  • National Grid and Electrical Distribution Network
  • car
  • Royal mail

The report said the confidence of international investors in the UK would be "severely hurt" if the Labor Party did not pay the industry's full market value.

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The Ministry of Labor said that nationalization of energy infrastructure will cause a green revolution

According to the analysis, the value of state-owned assets will rise and potential revenue will be generated, but the focus of this study is not on estimating potential benefits, but on costs.

  • Increasing labor costs for wind farms and electric vehicles
  • Labor promises 32 hours per week

Rain Newton-Smith, chief economist of the CBI, called the price tag "tear." And she said £ 19.6 billion is just the starting point.

"It does not take into account the maintenance and development of the infrastructure, tax downs on pension pots and savings deposits, and the impact on the state's public finances.

A fair economy

"There are many other priorities in public spending, from investing in youth to the transition to a low-carbon economy and connecting cities and communities.

"These issues are to stay in business overnight and want the government to speak. Nationalization will waste time, energy and public money."

A labor spokesman said the CBI is more interested in protecting shareholders than creating a fair economy. He blamed the "unmatched scar removal" tissue.

The party, for example, said railroad nationalization is very popular among travelers who are tired of poor service. Bringing the state grid back under state control will be part of a plan to establish a National Energy Agency to help the Labor Party propose a green industrial revolution.

A spokesman said, "It seems that the CBI is incapable of talking about public dialogue with the public, which is widespread across Europe." economy."

Shadow Secretary John McDonnell said nationalization is cost-neutral because the company's profits cover the borrowing costs needed to raise funds.

Last week, the Fiscal Research Institute suggested that focusing on the initial costs of labor planning was the wrong approach. "Economically important, whether these assets can be better managed in the public or private sectors."

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