Labour propose confiscating 10% uk equities - pension planning response?

michaels

So this is currently a hypothetical but if labour do confiscate 10% of all uk equities presumably any uk equity funds will suffer the same loss and this will get priced in depending on how soon an election is likely and opinion polls.

Would it make sense to shift funds out of uk equities before the market starts pricing this in seriously?

Spreadsheetman

Interesting topic. I can't see any multinational company having headquarters in the UK for more than 24 hours after a hypothetical Labour victory.

scaredofdebt

Who says anything about "confiscating equities"?

Turpinr

Or after brexit.
F*ck business said the rotund former foreign secretary.
He has similar plans for manufacturing ie none

Filo25

michaels wrote: »

So this is currently a hypothetical but if labour do confiscate 10% of all uk equities presumably any uk equity funds will suffer the same loss and this will get priced in depending on how soon an election is likely and opinion polls.

Would it make sense to shift funds out of uk equities before the market starts pricing this in seriously?

Seems a somewhat bizarre policy not that I have read about it in too much detail yet, how are they planning to handle people working for subsidiaries of overseas companies?

michaels

And of course once you have established the principal of confiscating private assets no doubt it won't be long till you take another 10% to 'save the NHS' etc etc

Also those with large dc pension pots are clearly fat cats who have benefitted at the expense of workers and the public sector so it will be fairest to reclaim from pension pots all that higher rate tax relief and use it to fund decent pensions for those who ha e to rely on state provision.

Silvertabby

Filo25 wrote: »

Seems a somewhat bizarre policy not that I have read about it in too much detail yet, how are they planning to handle people working for subsidiaries of overseas companies?

Probably never occurred to them. They're too busy with their 'let's get back to the 1970s' dreams, when specially selected 'workers' (ie, loyal leftie unionites) were given company boardroom places and would routinely veto everything except pay rises for the workers. Is it any wonder so many companies (Leyland Motors union leaders, you know who you are) folded.

One of their other plans is to bin Council tax and reintroduce the old rates system, charging 0.8% per year of the property value. That would cost us an extra £50 per month, which we could swallow - but for the elderly lady living nearby that extra £50 (probably more if she lost her single occupants discount) would be the difference between 'heat or eat'. And we live in a relatively cheap housing area - property rich/cash poor pensioners living nearer London would see their council tax/rates bill quadruple. Perhaps that could be called 'Granny rates tax'.

michaels

Silvertabby wrote: »

Probably never occured to them. They're too busy with their 'let's get back to the 1970s' dreams, when specially selected 'workers' (ie, loyal leftie unionites) were given company boardroom places and would routinely veto everything except pay rises for the workers. Is it any wonder so many companies (Leyland Motors union leaders, you know who you are) folded.

One of their other plans is to bin Council tax and reintroduce the old rates system, charging 0.8% per year of the property value. That would cost us an extra £50 per month, which we could swallow - but for the elderly lady living nearby that extra £50 would be the difference between 'heat or eat'. And we live in a relatively cheap housing area - property rich/cash poor pensioners living nearer London would see their council tax/rates bill quadruple. Perhaps that could be called 'Granny rates tax'.

NIce 235% increase for us. Can't see them increasing my minimum wage and tax credits by enough to compensate!

Edit that is 375 per month for me to find out of my take home pay of 875 per month. No council tax benefit for us as we ha e savings of over 16k

Silvertabby

michaels wrote: »

And of course once you have established the principal of confiscating private assets no doubt it won't be long till you take another 10% to 'save the NHS' etc etc

Also those with large dc pension pots are clearly fat cats who have benefitted at the expense of workers and the public sector so it will be fairest to reclaim from pension pots all that higher rate tax relief and use it to fund decent pensions for those who ha e to rely on state provision.

In labourspeak, 'the poor' are those who qualify for means tested benefits and 'the rich' are those who don't.

thickasabrick

Can you post links to articles or web pages to give some background on this theory please ?

michaels wrote: »

So this is currently a hypothetical but if labour do confiscate 10% of all uk equities presumably any uk equity funds will suffer the same loss and this will get priced in depending on how soon an election is likely and opinion polls.

Would it make sense to shift funds out of uk equities before the market starts pricing this in seriously?

Paul_Herring

scaredofdebt wrote: »

Who says anything about "confiscating equities"?

Labour.

Private companies are to be forced to give up 1% per year of their equity for (at the moment) 10 years to the employees and the (Labour) Government.


https://www.ft.com/content/4cad1c50-bf59-11e8-8d55-54197280d3f7

any company in Britain with more than 250 employees will have to hand over 10 per cent of the company [..] to its staff.

https://www.bbc.co.uk/news/uk-politics-45621361

Many companies offer incentives and discounts to employees who wish to build a shareholding over time. That is not the same as taking 10% of the company away from its current owners to stick in a fund for the workers and the government's benefit, which seems to be what the shadow chancellor is proposing.

https://metro.co.uk/2018/09/24/john-mcdonnell-to-tell-labour-party-conference-he-wants-workers-to-get-10-of-companys-equity-7973124/

Labour is launching a radical plan to require private companies to hand over a 10 per cent share of their equity to workers.