McDonnell: asset managers like our investment plans (but not the taxes)

PAUL ELLIS via Getty Images
Sadiq Khan's addition will do little to quell anger that the Labour conference line-up is too southern

PAUL ELLIS via Getty Images Sadiq Khan's addition will do little to quell anger that the Labour conference line-up is too southern

Shadow chancellor John McDonnell this week told his party's annual conference that a future Labour government would bring Private Finance Initiative (PFI) contracts back in house. Successive governments have attempted to reform the process.

A CONTROVERSIAL private contract used to fund Carlisle's Cumberland Infirmary could be brought back into public ownership under a Labour government, the party has claimed. If its plan is to bring all PFI contracts back under the control of government it is going to be extremely hard, and potentially very expensive.

A "bellicose" tweet from US President Donald Trump constitutes a "declaration of war" against North Korea, the regime's foreign minister said yesterday as he threatened to shoot American military aircraft out of global skies, reports The Times.

"The Shadow Chancellor's vision of massive state intervention is the wrong plan at the wrong time".

CBI director-general Carolyn Fairbairn told McDonnell that "the world is watching" and warned worldwide investors could be put off by his plans.

But these huge costs have since been widely blamed for contributing to financial problems in the local NHS.

Aides to the shadow chancellor said a Labour government would review all existing PFI contracts and, where necessary, take them over and bring them back in-house.

He said Labour wanted the financial regulator to impose a cap on the amount of interest payable on credit card debt to help those caught in "persistent debt".

JUST ANNOUNCED: Labour will introduce a cap on credit card charges so no-one will ever pay more in interest than their original loan.

The regulator was so anxious that in April it proposed new regulations to force companies to stop persistent debt spiralling. "This includes waiving or cancelling interest or charges when customers can not afford any of the options proposed to repay their balance." said an FCA spokesperson.

"Profits which are coming out of the budgets of our public services".

Chief secretary to the treasury, Liz Truss, said that Mr McDonnell's plans would add billions of pounds to the £253 billion of spending promises already racked up by Labour since the launch of its manifesto.

McDonnell told Labour members scenario planning for all eventualities such as a run on the pound or capital flight was important partly because, 'people want to know we are ready, they want to know we have a response to anything that can happen'.

He criticized the banking system for pumping up property prices and fuelling a "rentier economy", pledging instead to make sure banks invest in "high value, high productivity" businesses.

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