Corbyn’s ‘protectionism’ likened to Trump’s tariffs

JEREMY CORBYN has told business leaders that Brexit will allow Britain to support failing manufacturers with government money.

Under proposals compared to Donald Trump’s “America First” policy, Mr Corbyn suggested a Labour Government would give British businesses preferential or exclusive access to key Government contracts and would hand out state subsidies.

The Labour leader, speaking to manufacturers in Birmingham yesterday, said his party would tear up the rules on state aid in order to protect UK exporters after Brexit.

He suggested that contracts for the NHS, rail networks and the Armed Forces could be kept in-house to ensure that taxpayers’ money was reinvested in Britain. Labour would seek specific opt-outs of EU rules on state aid and fair and open competition.

Mr Corbyn also praised Brexit for driving down the value of sterling and creating a more “competitive pound”, making it easier for manufacturers to export their wares abroad.

Last night ministers and business leaders accused Mr Corbyn of hypocrisy for attacking Mr Trump’s trade policies while at the same time promoting similar forms of “protectionism”.

Stephen Martin, director general of the Institute of Directors, said Mr Corbyn’s plan appeared to be a “fetishisation of factories and production lines over all other parts of the economy”.

“For all the criticism of America’s current approach to trade in this speech, the proposals of subsidies and ‘buying British’ are just as protectionist as tariffs,” he added.