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Shareholders may not be fully compensated under Labour's nationalisation plans, it is understood. Investors in companies judged to have behaved poorly since privatisation could lose out. They will not necessarily receive the full market value of their shareholding. Labour figures believe Parliament should consider how much companies have invested and how they have managed their assets when it calculates compensation. English water companies would be a priority for public ownership, and Labour may make investors exchange shares for government debt - or gilts. Prof David Hall, from Greenwich University, says the nationalisation of the failing bank Northern Rock - and a court case that followed - showed it was "perfectly reasonable" for the government to take ownership of a private company without fully compensating shareholders. The collapse of Northern Rock: Ten years on In Northern Rock's case, investors were paid nothing. During Jeremy Corbyn's first leadership campaign John McDonnell - then Mr Corbyn's campaign agent, now shadow chancellor - warned a Labour government might take back recently privatised companies with reduced compensation or none at all. Prof Hall says: "Some people think of it as the government just buying things on the stock market. That's not how public ownership works." Labour thinks privatisations in the 1980s and 1990s were a bad idea, and that privatised companies give consumers a bad deal. Mariana Mazzucato is the Director of UCL's Institute for Innovation and Public Purpose and a former Labour adviser.
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