LONDON (Reuters) – Britain’s monetary sector will likely be “the servant of industry not the masters of us all” if the opposition Labour Party will get into energy, its chief Jeremy Corbyn will say on Tuesday, accusing bankers of taking the financial system hostage.
Corbyn, a socialist who has gained over many citizens together with his guarantees to renationalize companies and enhance public spending, has lengthy focused London’s profitable monetary sector, saying politicians have develop into in thrall of cash makers for too lengthy.
In a speech to a producers’ conference, Corbyn will renew his pledge to rebalance Britain’s financial system if he wins energy in an election not due till 2022, and also will criticize Prime Minister Theresa May for providing little readability over Brexit.
“For a generation, instead of finance serving industry, politicians have served finance. We’ve seen where that ends: the productive economy, our public services and people’s lives being held hostage by a small number of too big to fail banks and casino financial institutions,” he’ll say.
“No more. The next Labour government will be the first in 40 years to stand up for the real economy. We will take decisive action to make finance the servant of industry not the masters of us all.”
Big business has been cautious towards Labour, with monetary companies company Morgan Stanley warning buyers that Corbyn successful energy was a much bigger political threat than Brexit.
But they have additionally began partaking with the celebration, and Corbyn’s deputy, Labour’s finance coverage adviser John McDonnell took his message that capitalism was residing on borrowed time to the global elite on the World Economic Forum in Davos this yr.
Any deep mutual understanding appears far off for now, with Corbyn promising to finish the unfold of finance’s “extractive logic” that “has spread into all areas of life with short-term performance and narrow shareholder value prioritized over long-run growth and broader economic benefit”.
The 68-year-old chief will say if in energy, his celebration would shield firms from hostile bids, citing the takeover bid of aero-engineer GKN (GKN.L) by Melrose (MRON.L).
“We rightly praise the growth of companies like GKN and their location in the UK. And yet when we are facing the possible destruction of that company, we are powerless to act,” he’ll say.
“That’s why the next Labour government will broaden the scope of the ‘public interest test’, allowing government to intervene to prevent hostile takeovers which destroy our industrial base.”
Reporting by Elizabeth Piper, enhancing by Andy Bruce