As water is found on Mars, McDonnell tells comrades: ‘Another world is possible’
Business leaders warned that if Mad Mac ever got the chance to put his plan into practice, it would quickly bankrupt Britain.
McDonnell told the Labour Party conference in Brighton that he would abandon austerity and adopt an unrestrained tax-and-spend agenda to create “another world.”
He boasted he was “open” to the idea of a 60p top tax rate for big earners — even though his leader and socialist soulmate Jeremy Corbyn had on Sunday ruled out going above 50p.
McDonnell said: “We are in a new era of politics. Austerity is not an economic necessity, it’s a political choice.”
He promised that a Labour government would close the pay gap, reverse cuts, build homes, invest taxpayers’ money in key industries and introduce a higher living wage.
McDonnell also outlined rent controls, new standards for all workers and hinted the currently-independent Bank of England may be forced to use monetary policy to influence employment and wage rates.
Mr McDonnell claimed Labour would fund its vast spending spree by scrapping subsidies for firms and cracking down on tax avoidance.
Inside the hall, McDonnell’s speech got a standing ovation from left-wing “comrades.”
But outside moderate former Labour ministers cringed — and Tory MPs and business leaders predicted that a McDonnell-run Treasury would cripple aspiration and rapidly wreck the British economy.
Treasury Secretary David Gauke said: "Labour are a serious risk to Britain's economic security.”
British Chambers of Commerce director general John Longworth said: “There is a difference between an entrepreneurial state — one that supports growth and innovation — and a big state, reaching into and directing every facet of business and national life.
“John McDonnell is right to go back to first principles and review the shape of the UK economy. However, he must not prejudge these reviews or insist on attacking business and wealth creators when a conversation is what is needed.”
CBI director general John Cridland warned: “There is a risk that when the economy is close to full capacity, intervening in monetary policy could increase economic volatility, push up inflation and raise borrowing costs for households and businesses."
Mark Littlewood, director general at the Institute of Economic Affairs, said Labour’s hard-left economic rhetoric was “deeply disturbing.”
“The Labour Party now believes the ingredients for long-term prosperity are higher taxes, higher spending, more regulation and government interference in industry.
“The overwhelming evidence from the last century suggests the opposite to be the case.”
Mr Littlewood said that the panel of economic experts who had signed up to advise McDonnell showed how radical Labour’s intentions are.
One of them, French professor Thomas Piketty, has called for a global tax on the prosperous to “redistribute wealth.” He also favours a top rate of income tax of 80p.
Earlier McDonnell once again spoke of his admiration for Karl Marx, the father of communism.
He said: “If you look at most of the institutions that are teaching economics today, Marx has come back in to fashion because people have gone back to his analysis of how the system works.”
And asked by the BBC about his long-stated desire to “overthrow capitalism, McDonnell quipped: “It’s happening.”
Conference highlights
‘Stick it to the PM’
He claimed David Cameron only dumped his support for a third runway at Heathrow after a protester tried a similar stunt. He said: “We need a bit of protest. My constituent tried to superglue himself to the PM. Eventually, we won the argument.”
Mr McDonnell insisted illegal acts are justified if they are non-violent. And he encouraged mass trespass at corporate HQs. He said: “Companies start listening when students occupy their offices.”
This party is f****d
A SENIOR Blairite MP described Labour as “f****d” to roars of laughter.
Former No10 adviser John Woodcock was telling a story about a child predicting the party’s fortunes under Jeremy Corbyn.
The MP for Barrow and Furness, who chairs Blairite group Progress, spoke at a private party to guests including ex-Home Secretary Charles Clarke.
He said: “We must respect the view put to me by a candidate discussing the ramifications of the leadership result with their family. A seven-year-old marched in and said, ‘La la la, we’re f****d’.
“They told her it wasn’t appropriate and she said, ‘It’s OK mummy, it’s in context’. In this new tolerant environment where we all go forward it’s probably better if I leave it there.”
Conference diary
By HARRY COLE, Westminister Correspondent— HAPPY birthday Diane Abbott, 62 on Sunday. Recalling her reported trip across East Germany with Jeremy Corbyn, one MP teases: “We’ve done a whip-round. Got her a motorbike holiday!” No sign of her former lover for celebratory drinks at a conference bar though.
— MORE “straight talking, honest politics” from Ed Miliband’s former aide Polly Billington, who quit his team to fight (and lose) the marginal seat of Thurrock: “Frankly the reason we didn’t win this time is people didn’t believe we could deliver. We couldn’t sort out the dogs**t.”
— DAN Jarvis has come up with a novel, if time-consuming, way of winning over voters. The former Para was asked how someone could convince their brother to vote Labour. Dishy Dan replied: “Tell him to come to the Commons. I will take him for a coffee.”
— MARIA Eagle claims she’s “honoured” to be Jeremy Corbyn’s shadow defence secretary, despite his barmy views on scrapping our Armed Forces. A Labour source reveals Ms Eagle was fifth choice after senior figures rejected the role.
Warning to mods
In comments immediately taken as a thinly-veiled threat, John McDonnell said he was “disappointed” some frontbenchers had retreated to the backbenches.
And he said: “In the spirit of solidarity upon which our movement was founded I say come back and help us succeed.”
His remarks came as fellow leftie MP Michael Meacher called for Lord Mandelson to be expelled from the party for calling Mr Corbyn “unelectable” to No10.
Mr Meacher said the Blairite grandee’s behaviour was “traitorous” and brought the party into disrepute. He said Mandy saw Labour as “an instrument for his own clique to gain power and retain power”.
Lawson 40p win
HISTORY shows that cutting tax rates for the highest earners INCREASES the overall take for the country.
As Tory Chancellor, Nigel Lawson slashed the top rate of income tax from 60p to 40p in 1988. The cut saw the proportion of tax paid by the richest shoot up.
In 1986-87 the best-paid one per cent contributed just 14 per cent of all income tax.
But after the top rate fell it rose to 21 per cent and stayed there. Lawson also cut the lower rate from 30p to 25p. Under Lady Thatcher’s first Tory budget in 1979 she cut the top rate from 83p to 60p.
That also saw an increase in the share of tax paid by the country’s top earners.
She cut the basic rate by 33p to 30p. The 40p rate was introduced to exclude public sector workers like teachers, police officers and nurses.
Only one in 15 were caught by the 40p rate. Now it is almost one in six — more than four million workers.
PM David Cameron wants to raise the 40p threshold to £50,000 by April 2020.
5 Reasons why it won’t work
1. PEOPLE’S QUANTITATVE EASING: McDonnell wants the Bank of England to consider printing money to fund large-scale investment. Experts warn it would hammer the Pound and send inflation sky-high.KARL MARX OUT OF TEN: 11
2. IMPOSING RENT CONTROLS: Swedish economist Assar Lindbeck says rent controls are the “most effective technique presently known to destroy a city — except for bombing”. And he’s a Socialist. Any cap makes it less attractive for landlords to make homes available or maintain them. KARL MARX OUT OF TEN: 8
3. NATIONALISATION: Experts claim putting train giants back in public hands would starve the franchises of a fortune in funding and slam the brakes on any hint of competition.KARL MARX OUT OF TEN: 7
4. AGGRESSIVE TAX HIKES: Labour’s new team believe they could raise up to £120billion through a new attack on tax avoidance. Widely dismissed by many experts as completely unrealistic.KARL MARX OUT OF TEN: 7
5. A BLIZZARD OF RED TAPE: Under John McDonnell, Labour would “set new standards at work for all employees” via a radical Department for Business. The prospect of the state interfering in every firm from the corner shop to the factory floor enraged bosses yesterday.KARL MARX OUT OF TEN: 7
Delegate ‘Nazi’ row
SIOUX Blair-Jordan sparked fury saying the disabled might as well walk into a Nazi “gas chamber” if the PM reforms human rights laws.But Jeremy Corbyn embraced the Colchester delegate.
Burnham a rail twit
ANDY Burnham put his foot in it saying Labour would conquer Network Rail delays by renationalisation — but it IS state-owned.The Shadow Home Secretary tweeted his fury while stuck on a delayed train.
— THE traditional Labour “Scots Night” bash fell flat this year after Scottish Labour’s May wipe-out. One partygoer quipped: “There are more Scottish journalists here than politicians.”
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