Radical John McDonnell plan to force transfer of company ownership to workers 'to be scrapped' in staggering Labour U-turn

AN INCENDIARY Labour plan to force firms to hand over 10 per cent of their shares to workers could be SCRAPPED in a staggering u-turn.

Just 21 days after he unveiled the idea, Shadow Chancellor John McDonnell said he was open to watering it down.

He explained he was flexible about how to achieve the “point of principle” of giving workers greater ownership of the companies they work for.

One alternative is mandating all listed companies to offer employee ownership schemes to their workers – which many already do.

He told The Financial Times: “You tell another way of doing that that’s practical, pragmatic and in line with our objective then great, we’ll listen.”

The astonishing climbdown follows warnings from business leaders that the 10 per cent share grab would cost thousands of jobs and force firms overseas.

Experts said the idea was nothing more than a stealth tax designed to force companies to hand over billions of pounds to a Labour government.

Mr McDonnell was branded the “most dangerous man in Britain” after vowed to give all employees of companies with a workforce of more than 250 staff a 10 per cent share in the business.

Under the so-called Inclusive Ownership Fund – bosses would have to give 1 per cent a year to staff until they hit the 10 per cent target.

But payouts to the staff would be capped at £500 a year – with the rest going towards a ‘social dividends’ fund for schools and public services.

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Speaking last night, Matt Kilcoyne of the Adam Smith Institute said: “After just three weeks, John McDonnell’s grand radical plan is on the rocks, but it’s nothing compared to the Communist chaos he’d unleash if he ever got the keys to Number 11.

“Not only did he promise to steal from shareholders and from everyone’s pension pots, but he also told businesses he knew better than they did how they should be run.

“Time for the Shadow Chancellor to drop his plans altogether.”

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