Nigel Green: Corbyn victory a major issue for investors
Nigel Green, CEO of deVere group, has warned Jeremy Corbyn’s leadership victory will be a “major issue” for global investors, and his economic policies would be “detrimental” to Britain’s pro-business reputation.
Green made his comments after the Islington North MP was formally announced leader of the Labour Party on Saturday morning.
“The victory of this hard-Left socialist as Leader of Her Majesty’s Opposition is, I suspect, going to prove to be a major issue for global investors,” Green said.
“Corbyn’s economic policies fly in the face of the message ‘Britain is open for business’. They would be detrimental to Britain’s hard-earned and invaluable pro-business reputation. He’s determined to drag Britain back to the 1970s, an era in which the UK was strangled by high taxes and an inflexible labour market. If he thinks high taxes and inflexible labour is the way forward in today’s world, I suggest he looks at France in the first years of Hollande’s presidency.”
Green suggested Corbyn look at the “plentiful” examples that “prove” countries which do not levy high taxes on the richest in society reap positive economic effects in return, and believes increased taxation would serve as a disincentive to work and invest.
“So-called Corbynomics, whereby everyone would pay more tax to pay for hugely increased public spending, would backfire spectacularly,” he said.
“Mr Corbyn seems so far removed from reality he is unwilling or unable to accept if taxes are excessively increased, many of Britain’s most successful wealth and job creators and investors, who also support the Revenue through their significant UK income tax receipts and personal spending, will simply move to lower tax jurisdictions. These individuals have the resources to do so and will do so.”
Green concluded: “In short, Mr Corbyn’s economic policies would mean reducing living standards across the board, slashing the tax base, and compromising the country’s ability to work for and with the majority.
“What Britain needs to secure its long-term sustainable economic growth are further supply-side reforms, a continued and secure place within the EU, a focus on ironing out macroeconomic imbalances, and a robust and progressive immigration policy.
“Global investors have been monitoring the UK political landscape carefully in recent times and scrutiny will be intensified further due to Corbyn’s victory.”