Corbyn admits it’s right to plan for run on pound

UK Labour leader Jeremy Corbyn has weighed in on the dire outlook for sterling should the Labour party come to power, following finance spokesman John McDonnell’s warning on Monday.

McDonnell claimed Labour is “going to be a radical Government” at a party conference on Monday, and admitted that while a run on the pound was unlikely, “you never know.”

Corbyn told the BBC that: “John is right to look at all these scenarios because if we’re going to move into Government we need to know what we’re going to do,” Bloomberg reports. “Surely that’s what an opposition serious about getting into Government wants to do,” he added.

The Labour leader added that there has “been a run on the pound over the last two years”. The pound has plummeted around 12 per cent against the dollar over the past two years, most notably in June 2016 following the European referendum result.

Labour’s manifesto includes state ownership of the railways, water companies, Royal Mail and some energy companies, with stockholders handed government bonds as compensation. Chancellor of the Exchequer Philip Hammond said McDonnell’s comments illustrated the “disastrous effects that Labour’s plans would have on Britain’s economy.’’