IFS warns Labour renationalisation may delay low-carbon economy

John McDonnell rejects claim, saying thinktank is taking 'nakedly ideological stance'

Labour's plan to renationalise large chunks of the economy risks years of disruption that could delay Britain's transition to a low-carbon economy, a thinktank has said.

The Institute for Fiscal Studies warned that taking water, energy companies, the Royal Mail and railways under state control would be costly, complex and risky and said Labour might do better to tighten regulation instead.