Corbyn says bankers are "running scared" after Morgan Stanley warns Labour would be worse than Brexit

 
Helen Cahill
Follow Helen
New Scottish Labour Leader Richard Leonard Gives Keynote Speech To Party Activists In Glasgow
Labour has promised to end the "rigged system" (Source: Getty)

Jeremy Corbyn has said it is "no wonder" that bankers are running scared from the UK.

The comments from the Labour leader came after a report from Morgan Stanley that warned a government led by Corbyn would be worse than a so-called "hard" Brexit.

Read more: John McDonnell slammed for refusing to cost Labour's nationalisation plans

The report from the bank's European equity team read: "The UK is in the midst of a double whammy of uncertainty in the shape of Brexit and a fragile domestic political situation.

"Taken together, these two factors - which are interrelated to some degree - cast a long shadow over the policy backdrop and economic outlook of the UK."

Corbyn and his shadow chancellor John McDonnell have pledged to nationalise large parts of British industry, a policy McDonnell has suggested will cost nothing to the taxpayer. Morgan Stanley said water and power companies were most at risk.

Read more: Tories must fight back against Labour lunacy

In a tweet today, Corbyn said: "No wonder bankers who helped crash our economy are running scared. Labour will do what the Tories refused to and end this rigged system."

Many voices in the business community have warned about the impact of a Corbyn government. During the party's conference in September, the Confederation of British Industry said that Labour's policies would send investors "running for the hills".

Related articles