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John McDonnell’s plot to track down water giants’ shareholdings as they move them off shore to dodge Labour’s renationalisation plan
- Investment giants have already shifted shareholdings to Hong Kong
- They own stakes in utilities such as Yorkshire Water and Anglian Water
- McDonnell said that if Labour comes to power it would ‘take appropriate action’ to ensure it could still go after water companies with Hong Kong ownership
The Shadow Chancellor has threatened to pursue water giants which move shareholdings offshore
The Shadow Chancellor has threatened to pursue water giants which move shareholdings offshore to escape the risk of renationalisation.
John McDonnell said under a Labour government he would ‘find a mechanism’ to claw back ownership of stakes held by investors who try to shelter behind overseas treaties.
These agreements, such as one between Britain and Hong Kong, are designed to stop the state seizing assets.
Investment giants, including pension and insurance firms which own stakes in utilities such as Yorkshire Water and Anglian Water, have already shifted shareholdings to Hong Kong in a bid to dodge Labour’s renationalisation plan.
But speaking to The Sunday Times, McDonnell said that if Labour comes to power it would ‘take appropriate action’ to ensure it could still go after water companies with Hong Kong ownership.
He said he would not attempt to renationalise firms such BT, but would focus on power networks, Royal Mail, rail companies and water firms.
The Centre For Policy Studies estimates this would cost at least £176 billion.
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