John McDonnell has changed his tune from Labour conference, when he said
“What happens if there is a run on the pound? What happens if there’s capital flight? I don’t think there will, but you never know, so we’ve got the scenario plan for that”
Now he insists “there’s never going to be a run on the pound” and “of course” he isn’t planning capital controls if it happens. Only a few years ago McDonnell used to openly threaten the City with capital controls if they opposed his policies. Could it be that he’s just a little more honest in a room of fellow travellers than he is addressing the nation?
UPDATE: A Guido reader reminds us that Jeremy Corbyn said:
Corbyn allies from the likes of Paul Mason to Mark Serwotka bang on about capital flight and capital controls at left wing seminars all the time. They see it as the ruling class trying to destabilise left-wing regimes – like Venezuela – rather than the middle classes trying to get their money out before the economy inevitably tanks. The Shadow Chancellor is being economical with the actualite because it has turned into an effective Tory attack line. Effective because it is true…