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ChelseaBoy

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

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Labour's nationalisation plans would cost at least £196bn, according to the Confederation of British Industry.

The employers' group said the up-front cost of taking control of the water and energy utilities, train firms and Royal Mail was equivalent to all income tax paid by UK citizens in a year.

It was the combined total of the £141bn health budget, and the £61bn spent on education, analysis by the CBI said.

 

The CBI's report estimated there could be a 10.7% increase in debt from bringing industries back into public ownership.

This would raise debt levels to 94% of GDP, the highest point since the 1960s, and would cost about £2bn a year, according to the study.

It also said that under Labour's plans, savers and pensioners could suffer an estimated £9bn loss to their holdings, which translates into £327 for every household in the country.

The CBI bases its analysis on the nationalisation of:

  • Nine water and sewerage companies and seven water-only companies in England
  • National Grid, and the electricity transmission and distribution networks
  • Rail rolling stock
  • Royal Mail

The report said the confidence of international investors in the UK would be "severely hit" if Labour refused to pay full market value for the industries.

 

It seems McDonnell will have to really shake that money tree if he is to fund this and also pay for students in England/Wales/NI to get free tuition and pay back what has already been spent. I seem to remember this alone was £8bn per year!!!

 

It seems tax and spend will be very much alive, but they will be able to recoup about 100m by taxing the super rich and entrepreneurs a bit more...if they stay in the country that is. 

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Not to worry. It's not their money.

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Are Corbynists even contemplating compensation. Recovery of stolen property of the people?

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32 minutes ago, Scott7 said:

Are Corbynists even contemplating compensation. Recovery of stolen property of the people?

Well if they don't pay a reasonable price to shareholders of those companies, pensions in the UK will take a massive hit as confidence will be eroded. Overseas investment will also dive, as how can any company invest when there is a risk of a punitive policy to nationalise. 

 

Why stop at Rail, Water, Energy and the Post Office - what about Air travel from BA, telecoms at BT, nuclear energy, bus services etc etc etc.

 

And they talk about the Brexit party having a rose tinted view of the past! I appreciate the younger Labour supporter not knowing what it was like living under a socialist government, but older voters must remember the winter of discontent, strikes everywhere, bodies piling up, 3 day week, nothing got fixed, you can have any colour phone as long as it was cream, water stand pipes every summer.... things are not great now, but why make them worse!!!!

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2 minutes ago, alexscottislegend said:

Do you have a corresponding list of countries where capitalism has worked?

Can you think of one where it hasn't?

Edited by Bill

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