ALEX BRUMMER: The Corbyn exodus: How fears of a Labour government have already got investors worried
Jeremy Corbyn and his Shadow Chancellor John McDonnell thebritishherald
At the peak of the financial crisis a decade ago, I found myself bombarded by friends with questions as to what they should do with their cash to keep it safe.
Once again, many of the same concerns are haunting people of means. A high degree of uncertainty has unsettled their lives.
The precise impact of Brexit on business interests obviously is a factor.
McDonnell’s lengthy Who’s Who entry declares ‘generally fomenting the overthrow of capitalism’ as one of his recreations.
At the heart of the issue for everyone who believes in free markets are Labour’s economic and financial proclamations.
Aside from the threat of wholesale nationalisation, ranging from the railways to the big six energy companies and land banks held by housebuilders, Labour wants to overhaul property rights and taxes.
One McDonnell idea is to grab 10 per cent of the shares of every company, public and private, with more than 250 workers.
The result of which would be a calamitous fall in stock markets and wealth held in shares.
Among the policies outlined is a restoration of taxes on companies to previous higher levels of 30 per cent or more, from the current 19 per cent.
This is despite the evidence showing that the lower rate has generated more income because it disincentivised avoidance.
The changes to personal taxation proposed include a return of the highest-rate 50 per cent band on people earning £80,000 a year, plus tax surcharges on existing wealth.
McDonnell chillingly observed in 2012: ‘The wealthiest 10 per cent own £4,000billion.
