Corbyn: we need a “fundamental rethink” of finance sector

Jeremy Corbyn has vowed to call for a “fundamental rethink” of the City of London and the power of the finance sector.

In a speech to the EEF manufacturers’ organisation on Tuesday, Corbyn will say that his Labour government will “stand up for the real economy”.

“There can be no rebalancing of our distorted, sluggish and unequal economy without taking on the power of finance,” he will say.

“For 40 years, deregulated finance has progressively become more powerful. Its dominance over industry, obvious and destructive; its control of politics, pernicious and undemocratic.”

The Labour leader will say that for all too long, “politicians have served finance”, rather than the finance sector aiding the government and the UK’s prosperity.

Corbyn will go on to warn how the finance industry is threatening the success of aerospace company GKN. 

“GKN, one of the world’s oldest and most prestigious engineering firms, which employs 6,000 workers across the UK, contributes an estimated £1.3 billion to the economy, pays a healthy £174 million in tax each year and invested £561 million in research and development in the UK alone. And yet GKN is currently facing a hostile, allegedly debt-fuelled takeover bid by Melrose, a company with a history of opportunistic asset-stripping.

“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. 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.”

Exchequer Secretary to the Treasury Robert Jenrick, a member of the Conservative party, responded and said: “Labour don’t know how to handle the economy and would end up harming Britain’s businesses, and there would be fewer good jobs for people as a result.”

Tuesday’s EEF manufacturers’ organisation will also see International Trade Secretary Liam Fox praising the UK’s manufacturing sector and showing hope for trade following Brexit with Africa and Asia.