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John McDonnell says Labour’s plans will not hurt taxpayers in the pocket
John McDonnell has ducked questions over how much Labour would pay to fulfil its pledge to renationalise utilities.
Interviewed on the Andrew Marr show on BBC 1 yesterday (19 November), the shadow chancellor of the exchequer did not furnish a figure for how much Labour was setting aside for its public ownership plans.
He said Labour’s plan to substitute shares in energy and water companies for government bonds, the price of which would be set by the government, would not hurt taxpayers in the pocket
Appearing ahead of Wednesday’s Budget, McDonnell said: “When you take them (utilities) over, you swap shares for government bonds that are covered by the cost of profitable industries that we take over. The cost is always covered because these are profitable industries that will cover the cost of borrowing.”
“It will not be cost on tax payers: the price will be set by Parliament and bonds will be issued. “
McDonnell told Marr a similar model had been adopted in France to bring the Parisian water system back into public ownership.
Liz Truss, chief secretary to the Treasury, said: “John McDonnell’s borrowing binge shows exactly why Labour is not fit to govern.
“When asked repeatedly how much Labour’s spending commitments would cost, the shadow chancellor was unable to say. No wonder Labour are preparing for a run on the pound.”
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