Labour today refused to deny that John McDonnell’s plan to make companies issue shares to “employees” could involve a massive tax grab by the Treasury.
Shadow business secretary Rebecca Long-Bailey was unable to explain where billions of pounds generated by the plan would end up, saying details would come later.
She was pressed on the BBC Radio 4 Today programme with figures suggesting the Treasury would benefit more than workers from Mr McDonnell’s promise to make all firms with over 250 staff earmark a tenth of their shares for employees.
Presenter Nick Robinson said Shell would pay out a dividend of £1.2 billion, allegedly to workers. But in reality the cap of £500 per worker means that £1.1 billion would pass to the Treasury.
When asked if she denied that money would go to the Government rather than employees, Ms Long-Bailey said it would go into a “shared fund” but stressed that the scheme would bring other benefits, including more say for workers over company policies.
