Labour is a ‘nightmare for business’

A LABOUR Government led by Jeremy Corbyn is a ‘nightmarish’ prospect for business that could wreck the economy, a senior manufacturing lobbyist has warned.

Terry Scuoler, retiring head of the Engineering Employers’ Federation, said firms should not trust the ‘charm offensive’ mounted by the party’s hard-Left leadership.

The 67-year-old, whose association represents 20,000 businesses, said Labour pledges to seize control of railways, water firms, energy companies and Royal Mail would be just the start of a programme of ‘widespread nationalisation’.

He added: ‘There are a number of policy initiatives which are likely to be the thin end of a hardline socialist wedge.’

Shadow Chancellor John McDonnell – who claims to have the backing of some senior City figures – has pledged to borrow £250billion over a decade for investing. Ahead of June’s election, Labour pledged to hike corporation tax from 19 per cent to 26.

Josh Hardie, of the Confederation of British Industry, has said: ‘If to fund some of these things, business is seen as a bottomless pit, that will damage growth and investment.

‘If the idea is that it can all be paid for by excessive borrowing and punitive taxation, they need to understand what the impact will be on investment and growth.’