Labour promises law to cap credit card debts

Wednesday, 27 Sep, 2017

It said it would offer shareholder compensation for the contract nationalization.

The Labour leader has been greeted as a hero by many members at the party's annual conference in Brighton this week, following his surprise success at June's snap general election. Although no election is due until 2022, it is preparing for Theresa May's Conservative minority government to fall much sooner. He said that under the leadership of Jeremy Corbyn, Labour would sign no new PFI deals and would take current ones "in-house".

Meanwhile, Mr McDonnell said a Labour government would bring contracts signed under the Private Finance Initiative back into the public sector - although his comments were later clarified by the party.

The contracts have been used for decades to fund public infrastructure project using private capital.

A company will borrow the money to build it, but at a higher cost to the government.

It last occurred in September 1992 when, on a day known as Black Wednesday, the falling value of sterling forced the then Conservative government to pull out of the European Exchange Rate Mechanism after its attempts to support the currency failed.

Mr Davis and his United Kingdom team of negotiators started their fourth round of talks with European Union officials in Brussels last night and it is they, not Labour's leaders and their rhetoric, who will decide our future.

McDonnell said a Jeremy Corbyn-led government would bring the deals back "in-house" in an announcement that will send tremors through several corporates.

Business was critical of the approach.

The next Labour government will tackle the persistent debt spiral that many working families have become trapped in.

But Labour Treasury spokesman Peter Dowd said that the policy would be "pretty self-funding" in the long term, as the state would no longer have to pay out huge sums each year to contractors.

Under the proposed new rules, customers who pay more in interest and charges than they do in repayment of credit card debt over an 18 month period will also need to be helped by credit card providers. "But more than three million credit card holders are trapped by debt", he will say.

He told followers of Momentum, a hard-left activist group that he "doesn't think" there will be a slump in the currency, but "you never know, so we've got to scenario-plan for that". New measures have been asked for by the Financial Conduct Authority to assist people who are locked in a "persistent debt". "They pay about £2.50 in interest and charges for every £1 borrowed", said the FCA, according to The Guardian.

In the run-up to his re-election a year ago she tweeted: "One day in the far distant future we'll look back and we won't laugh, because this isn't bloody amusing".