Investors in utility companies would not be fully compensated at market value for their shares under Labour’s nationalisation plans, John McDonnell has admitted. Speaking on Radio 4 this morning the Shadow Chancellor instead said share prices would be determined by Parliament according to how MPs perceived the past behaviour of firms:

“The value of any industry which is brought into public ownership is determined by Parliament itself… the perceived behaviour [of companies] affects the price…”

Asked if shareholders would be compensated at market value, McDonnell replied:

“The market value will be determined by Parliament.”

Labour’s economic illiteracy in a nutshell…