Mr Smith wants to give the UK another ‘New Deal’ – stealing a page straight out of Tony Blair’s playbook. But he says he isn’t a Blairite and is desperate to persuade people that he’s a leftie.
Somehow, I don’t think that’s going to work – especially not with an idea, and a sum of money, plucked out of the air.
Mr McDonnell’s plan is based on a solid, working scheme that has served Germany very well.
And in politics, the best strategy is always to do what works.
John McDonnell has pledged that Labour will mobilise £500bn of investment and lending from the creation of a new national investment bank to help the UK economy recover post-Brexit – with £350bn coming directly from the public purse.
The shadow chancellor also promised to build a network of regional banks, inspired by Germany’s government-owned development bank, which he said could “rescue Britain’s communities from decay and rebuild Britain’s industries after years of neglect”.
Speaking in Sunderland, the Labour heartland that delivered a resounding vote for Brexit, McDonnell said his pledge would lay the foundations of a new economic model for British prosperity under the party.
“Today I am making a firm pledge: on coming to power, Labour will set up a national investment bank, and a network of regional banks whose aim is to help mobilise £500bn into the economy and transform Britain,” McDonnell, a key ally of Jeremy Corbyn, said.
One of Corbyn’s rivals for the Labour leadership, Owen Smith, launched his campaign over the weekend with his own spending pledge, a £200bn infrastructure investment package which he termed “Britain’s New Deal”.
However, McDonnell said the UK’s infrastructure requirements over the next decade or more come to £500bn of additional spending.
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