Jeremy Corbyn has today reiterated calls for the renationalisation of the energy, water, rail and mail sectors. It would require at least £176bn in borrowing, the equivalent of £6500 for every household. This would be an expensive gamble with a huge opportunity cost.
Labour has previously indicated that it would save money by refusing to pay the full market price for these industries. This could, in fact, end up being even more damaging to the UK economy, via a slump in business investment, higher borrowing costs and other factors.
Analysis by the CPS estimates the costs of these renationalisations as: over £55.4bn for energy, £86.25bn for the water sector, £4.5bn for Royal Mail, and £30bn for previously announced PFI nationalisation.
Date Added: Tuesday 24th September 2019