THE shadow chancellor has extended an olive branch to the City of London, offering ‘a seat at the table’ in future Labour policy making.
With his party planning to impose additional tax legislation on financial services if elected, John McDonnell says he wants a “new start in the relationship” between Labour and the sector.
The offer of more collaborative working was made during a speech at Bloomberg HQ on 19 April, when Mr McDonnell accepted that his policies were always likely to create unrest.
“I don’t expect some people to be overjoyed at having to pay a bit more in income tax or corporation tax or at the introduction of a financial transaction tax,” he said.
“But most people recognise with us the need for large-scale investment in both our infrastructure and new technology, and also in human capital with investment to raise standards in our education system, training, and research and development.
“What we are offering is a new start in the relationship between Labour and the finance sector. A relationship in which we recognise the potential of a transformed British financial system, at the leading edge of technology, fulfilling a clear, socially necessary role.”
Cover image by Rwendland (Creative Commons).