Labour plan treats business as ‘the enemy,’ foes say

LONDON • British business leaders warned Monday that a Labour government led by Jeremy Corbyn would put the economy in the “deep freeze” and “crack the foundations” of prosperity, as the party unveiled plans to seize control of swaths of industry.

John Mcdonnell, the shadow chancellor, was accused of treating business as “the enemy” as he pledged to end “vast executive salaries,” fire bosses of renationalized companies and snatch profits from successful firms.

He also hinted that Labour could re-endorse Clause IV, the socialist mission statement adopted in 1918, arguing that its “principles are as relevant today” as they were 100 years ago.

The original, which committed Labour to nationalization of industry and utilities, was dropped by Tony Blair in 1995 after he said it made the party unelectable.

The heads of some of the country’s biggest trade bodies said that Labour’s “blind ideology” would drive businesses abroad, hit pensions and drag down living standards.

In his speech to the Labour party conference in Liverpool, Mcdonnell set out plans to renationalize water companies and sack their executives before advertising their jobs with “dramatically reduced” salaries.

Labour sources confirmed the plan would apply across all sectors taken back into public ownership.

Mcdonnell said he would empower workers and bring to heel the “faceless directors” of industries who had presided over “profiteering” and hefty dividends.

It came less than 24 hours after Labour also confirmed it would force businesses with more than 250 employees to give 10 per cent of their shares to workers, in a move that could see FTSE firms delist or face handing over billions of pounds in equity.

Mcdonnell went on: “Let me make it absolutely clear that the full weight of the Treasury will be used to take on any vested interests that try to thwart the will of the people. Some said our manifesto was a fantasy or a wish list, attractive but ultimately not deliverable. I’m telling you today that we are planned, ready and prepared — not just to fight another election campaign but to implement our program when we win.”