onslow wrote:" This will cost the government nothing effectively as the profits from the nationalised industries will effectively pay the interest on them, yes I know it will only take a few years and they will be running at a loss"
This is what I dont get - the entire point of their nationalisation policy is to reduce their profits because at the moment they believe the companies are ripping off consumers. If they "stop" this ripoff, then the profits will reduce so they wont be able to pay the interest on the bonds.
I agree, the Lab government will just go into more debt if required, but it puts quite a hole in their argument
Labour seems to have missed, or quietly disregarded, the issue of the likely interest cost of the gilts. If the intention is to borrow to spend/invest (choose according to POV!) then gilt auctions will not do terribly well unless there is a hefty risk premium incorporated into the yield. Gilt yields may have already been lifted as well due to perceived risks from a shambolic Brexit* and the BOE trying to dampen inflation by raising interest rates and unwinding QE. I guess one could say that Labour will not care about this and will just tax everyone to oblivion instead, but I suspect in the cool light of day they will likely say something along the lines of "I know it was a manifesto commitment, but that was made before we realised the seriousness of the economic mess we have inherited...".
Granted, nationalisation still a risk, but look at the potential upside on NG if it does not happen, compared to downside from here if it does.
*The gilt market will make up its own mind on the risks of Brexit by the way, regardless of how marvelous anyone thinks it will be to be free of the "Doomed" EU.