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). 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 90%, or £9bn, of that going straight to the government. Clifford Ch...
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