Jeremy Corbyn promises to stop City bankers being 'masters of us all'

Jeremy Corbyn promises to stop London being 'masters of us all'

Jeremy Corbyn is to give a speech today

Tuesday, February 20, 2018

Jeremy Corbyn is to mount a new onslaught on the City of London, promising a Labour government would take decisive steps to make it the "servant of industry," not the "masters of us all."

In a speech to the EEF manufacturers' organisation today (February 20), the Labour leader will say Britain's "distorted and unequal" economy cannot be rebalanced without taking on the power of the financial sector.

He will attack a generation of politicians who believed the City could drive the whole economy and allowed it to exert a "pernicious and undemocratic" control over British politics.

After the attempted takeover of the GKN engineering group by Melrose Industries, Corbyn will also promise strengthened government powers to intervene in hostile takeovers.

In his address to the EEF conference in London, he will call for a "fundamental rethink" on who the financial sector serves and how it is regulated.

"There can be no rebalancing of our distorted, sluggish and unequal economy without taking on the power of finance," he is expected to say.

"For 40 years, deregulated finance has progressively become more powerful. Its dominance over industry [is] obvious and destructive; its control of politics, pernicious and undemocratic.

"The size and power of finance created a generation of politicians who thought the City of London could power the whole economy.

"For a generation, instead of finance serving industry, politicians have served finance.

"No more. The next Labour government will be the first in 40 years to stand up for the real economy. We will take decisive action to make finance the servant of industry, not the masters of us all.

"The next Labour government will broaden the scope of the 'public interest test,' allowing government to intervene to prevent hostile takeovers which destroy our industrial base."

But Miles Celic, chief executive of industry body TheCityUK, said politicians like Corbyn failed to understand the financial services sector was a "national asset" with major centres in cities such as Manchester, Glasgow, Cardiff, Birmingham and Bristol.