John McDonnell Says That Public Ownership Will Cost Taxpayers Absolutely Nothing
Labour’s plans to bring services into public ownership would cost “absolutely nothing”, John McDonnell has said.
The shadow chancellor’s comments came as he outlined an agenda to put public services “irreversibly in the hands of workers” so they can “never again be taken away”.
He told a Labour gathering in London that public ownership is not just a “political decision” but an “economic necessity”.
McDonnell claimed his plans would not cost the taxpayer a penny, the Press Association reports.
He told Sky News: “It would be cost neutral because you would be bringing into public ownership an asset.
“In addition to that, you would not just have an asset – that asset would give you income.
“Instead of that income going to shareholders, it would come to the taxpayer.”
calls for nationalisation continue to miss the point. At a time when the UK must be seen more than ever as a great place to invest and create jobs, these proposals would simply wind the clock back on our economy.
“If Labour turns its back on good collaboration between the government and the private sector, public services, infrastructure and taxpayers will ultimately pay the price.”
McDonnell announced the creation of a working group to look at how cooperatives can grow, expand and access capital, and to decide which sectors should be prioritised in the expansion of cooperative ownership.
He also accused the Conservatives of being “intellectually bankrupt”.
“Under the Tories, Britain is now seriously out of step with our international partners, failing to keep up with them.
“The Conservatives are intellectually bankrupt: caught between clinging on to the failing dogmas of the past and offering a pale imitation of the radical change which Jeremy Corbyn’s Labour Party now offers.”
Treasury Chief Secretary Liz Truss said: “Independent reports show Labour’s renationalisation plan will cost taxpayers billions and lead to worse services for people.
“Labour would put politicians in charge of running everything from the phone lines to electricity supply, meaning people have nowhere to turn when things go wrong. That didn’t work last time and won’t work this time.”
