Goldman Sachs is going to visit Labour, with tea and biscuits included

Lucy White
The Shadow Chancellor Delivers His Pre-Budget Speech
John McDonnell said Labour would consider staying in the single market (Source: Getty)

Global investment bank Goldman Sachs is set to meet the Labour party, shadow chancellor John McDonnell has revealed, in a sign that the financial sector is starting to take the possibility of a Labour government seriously.

Rather than seeking time with the heavy hitting City firm, McDonnell told Bloomberg in a television interview today that he was approached and asked if he would be willing to meet with Richard Gnodde, the head of Goldman Sachs' overseas divisions.

“I said of course I would,” McDonnell said. “We’ll make him a cup of tea and throw in some rich teas as well.”

The shadow chancellor has been making his presence known increasingly in the financial services sector recently. Yesterday an interim report, commissioned by McDonnell, was published recommending that the Bank of England be uprooted from its home in London and resettled in Birmingham.

Read more: This influential peer loves Labour's plans to move the Bank of England to Birmingham

The Labour party may also have some bridges to mend, after its leader Jeremy Corbyn told investment bank Morgan Stanley it was right to fear a Labour victory in the next election.

A Morgan Stanley equity strategist, Graham Secker, had told investors that they should be more concerned about a potential Labour government than Brexit. Its policies include potentially radical shake-ups such as the nationalisation of water companies and railways, while the party is also in favour of raising corporation tax and tax on the highest earners.

Yet Labour has won some people over with the prospect of a "softer" Brexit than that which has been offered by the Conservatives. McDonnell said that Labour would consider keeping Britain in a reformed single market, but that any deal with the EU would need to address "some of the elements that motivated people to vote for Brexit."

Read more: John McDonnell says nationalisation will be "cost free"

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