Panicking firms ‘Corbyn-proof’ themselves in case socialist Labour boss takes power

PANICKING firms are trying desperately to ‘Corbyn-proof’ themselves in case he ever becomes Prime Minister.

Water and power firms – which Labour wants to nationalise if they win the next election – are trying to protect themselves from an attack if he becomes PM.

The Labour boss has also said he would take control of Britain’s railways, Royal Mail and the Royal Bank of Scotland.

And as the Tories take a nosedive in the polls over Brexit, some firms are getting more spooked than ever and taking the prospect of a Corbyn Government seriously.

Thames Water recently added a clause to its bonds to ensure shareholder are repaid immediately if it were ever nationalised, Reuters reported.

And many foreign pensions and investment funds are opting to shift their assets overseas where they will be better protected.

“Your biggest fear as a bond investor is if your bond gets nationalised for less than market value,” Dan Neidle, partner at Clifford Chance, said.

“Labour have said they will honour the debts of nationalised businesses, but a large number of investors and infrastructure businesses remain concerned. The discussions we are having are increasing over time.”

Shares in utilities in the UK have also fallen since Labour’s plans were revealed just before the 2017 election, and investment in some firms is down too.

Other financial experts say it’s impossible to properly protect against a future Corbyn Government, and they should be ready for it if it happens.

It’s unlikely, though, that they would nationalise everything all at once due to the high cost it would be to the taxpayer.

Mr Corbyn’s plans to renationalise those key industries would cost each household £6,500, a study found last year.

Chancellor Philip Hammond said the damning dossier “lays bare Labour’s fantasy economics”.

A Labour party spokesperson said: “The benefits of taking water into public ownership are clear: ending rip-off prices and excessive dividends for private companies and investing in the long-term future of our economy.”

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