It's a newsworthy topic; Would a Jeremy ‘Corbyn’ elected government provide the environment entrepreneurs need to thrive? To answer this question, we have to assume that Labour lead by Jeremy Corbyn with John McDonnell as Chancellor will carry an overall majority in the Commons. So what are their policies?
1.) To nationalise the banks
This will take at least a few years to enact as the new regime will have to buy out the shareholders of all the current banks. In itself an expensive exercise and then surely they will have to put in their own management and this will be an incredibly difficult exercise as that management will have to enact the policy of their leaders. This is a fundamental change to what has existed in this country for hundreds of years and cannot surely be enacted. So is possibly a fantasy and would take two terms.
2.) Cut subsidies of £93 billion to corporations
This would surely take the form of higher rates of taxation on businesses that create wealth and employment. Hence employment in the private sector would surely stagnate during the enactment of this policy. This would burden the state with much more cost in benefits.
3.) Cheap loans via the state Bank of England
This sounds a cracking idea on the face of it, but is surely fraught with inflationary and profligacy. It would question the need for such cheap loans and what the criteria would be to receive or apply for such a loan. The initial loans would be to consume more goods and the second loans would be enabling those to repay the interest and repayments on the first loans as they would be out of work from a stagnating economy.
4.) Renationalisation of the railways and some utilities
This has some sound economic and social credibility and is not far from the wishes of a pure Labour government not tied to business as much as Blair and Brown were. Again an expensive idea and one which would need careful consideration as it is enacted. Those who remember, will recall the poor service levels from the state owned industries, the monopolies created and the strikes and wage bargaining enacted at periodic intervals. Steadily and carefully staged this can work.
5.) 60% plus top rate of tax, caps on high pay and special City of London taxation rates
Clearly dis-incentivising an entrepreneurial sector in society.
Clearly the policies above would make it beyond difficult for entrepreneurs to thrive. The ‘Sun’ newspaper famously told its readers in 1992 that if Kinnock was elected – ‘would the last person leaving Britain, please turn the lights out?’. The same would be said if the event of Corbyn being Prime Minister occurred in 2020.
For more insights into entrepreneurial behaviour, tips and management tools, please read my book: Drive Like a Real Entrepreneur.
(Photo courtesy of David Holt)