鈥淏uilding an economy for the many means bringing ownership and control of the utilities and key services into the hands of people who use and work in them. Rail, water, energy, Royal Mail 鈥� we鈥檙e taking them back,鈥� shadow chancellor John McDonnell told the Labour party's annual conference yesterday.
The CBI accused him of 鈥渕isplaced nostalgia鈥�.
Mr McDonnell said that, unlike the last Labour governments of Tony Blair and Gordon Brown, a Jeremy Corbyn government would turn its back on the use of private finance for construction projects and cancel all existing contracts.
鈥淲e have already pledged that there will be no new PFI deals signed by us. But we will go further. I can tell you today, it鈥檚 what you鈥檝e been calling for. We鈥檒l bring existing PFI contracts back in-house,鈥� he said.
He also promised massive government investment in public sector infrastructure. 鈥淲e鈥檒l build Crossrail for the north, connecting our great northern cities from west coast to east, and extend HS2 into Scotland,鈥� he said. 鈥淲e鈥檒l deliver the funding for Midlands Connect, overhauling transport across the Midlands. And we鈥檒l overturn decades of neglect and lack of investment in the southwest. We鈥檒l electrify railway lines from Cornwall right through to London.鈥�
Carolyn Fairbairn, director-general of the bosses鈥� lobby group Confederation of British Industry (CBI), was appalled. 鈥淭he shadow chancellor鈥檚 vision of massive state intervention is the wrong plan at the wrong time,鈥� she said. 鈥淚t raises a warning flag over the British economy at a critical time for our country鈥檚 future.鈥�
She added: 鈥淏usiness and politicians share a determination to create a fairer society in which everyone benefits. But the trickle of stalled investments caused by Brexit uncertainty could become a flood if these plans were to become reality. This would threaten the living standards of the very people that need help, from pensioners to students.
鈥淔orced nationalisation of large parts of British industry will send investors running for the hills, and puts misplaced nostalgia ahead of progressive vision.聽
鈥淲here Labour has engaged with business 鈥� from Brexit and skills to infrastructure and innovation 鈥� solutions have been found to deliver an economy that is both more prosperous and fairer. The CBI looks forward to urgent discussion with the Labour leadership to find better solutions to the shared challenges we face.鈥�
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