LONDON (Reuters) – Plans by Britain’s opposition Labour Party to nationalize utilities including the country’s electricity grid will damage investment as well as hurting many small shareholders, one of the country’s main business groups warned on Tuesday.
CBI President John Allan speaks at the Confederation of British Industry’s (CBI) annual dinner in London, Britain, May 21, 2019. REUTERS/Toby Melville
Last week, Labour published plans to renationalize the country’s 60-billion-pound ($77 billion) energy networks, taking companies such as National Grid, Scottish Power and SSE into public ownership.
Utilities warned this would damage investment, and on Tuesday the Confederation of British Industry’s president, John Allan, said he feared the impact would spread beyond the businesses directly affected.
“Labour’s proposals are not just a threat to these industries but to investment in our country at a time when it’s most needed, and above all to that essential partnership between business and government,” he told the CBI’s annual dinner.
Business investment fell every quarter last year due to uncertainty about how Britain will leave the European Union, and most economists