UK investors fear 'dangerous precedent' set by Jeremy Corbyn's share-grab policy

Concerns over plan to hand company shares to employees

A high-profile Labour Party policy that would cost investors an estimated £340bn and hand shares in UK companies to employees would set a "worrying precedent" and damage the UK's reputation as an attractive destination for international investors, fund managers have warned.

A Jeremy Corbyn-led Government has said it would require 10% of shares in all UK companies with more than 250 employees to be owned by so-called inclusive ownership funds (IOF).  SocGen's Edwards: Corbyn will be seen as moderate in next downturn The IOFs would pay dividends, of up to £500 each, to employees, with the balance being paid to the Government in what has been dubbed a stealth tax by critics. Analysis of the plans by law firm Clifford Chance estimates the policy could cost investors around £340bn in lost capital. The dividend payments would amount to £10bn annually, with ...