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Labour's mass re-nationalisation programme won't cost taxpayers a penny, John McDonnell has suggested.

The Shadow Chancellor said the plans would "not be a burden" on taxpayers overall - because more money will "always" come back from the industries themselves.

Labour has pledged to invest £250billion over 10 years and renationalise the railways, water firms and Royal Mail.

It's also pledged to buy out some PFI contracts and renationalise aspects of the energy market.

But the party has not said what the up-front cost of buying out these privately-owned public services would be. And today, Mr McDonnell refused to give a figure.

Instead Labour's moneyman told the BBC's Andrew Marr Show: "You're asking the wrong question."

(Image: BBC)

Mr McDonnell denied his programme was a "magic card trick", because he said profits from renationalised industries would cover the initial takeover cost.

He said: "When you take them over you swap shares for government bonds, and that is covered by the cost of those profitable industries we take over.

"It will be Parliament who sets the price on any of those nationalisations.

"What I would say is cost is always covered.

"Because these are profitable industries, and that will cover the cost of any borrowing. It will not be a burden on taxpayers."

He stressed the borrowing programme would be spread over 10 years, adding: "This is nothing untoward with what past governments have done.

"If we don't do this we're not keeping up with our competitors across Europe, the US and elsewhere.

(Image: BBC)

"When you invest those sums you get a return on that investment that covers any cost of borrowing."

Again he stressed: "If you wisely invest, and that's what we will do, you'll always get more than you have to pay out."

Mr McDonnell said the funds would be spent through a strategic investment board that brings together government and business.

He added: "That way we will get the best deal but more importantly we will be able to compete in a global market."

The interview came ahead of Wednesday's Budget - to which Labour has demanded a radical alternative.

Earlier this week, Mr McDonnell said a Labour government would spend an extra £17 billion a year on the NHS, education and local government while ending the public sector pay cap.

Setting out Labour's demands for the Budget, he has also urged a large-scale public house-building programme, funding for infrastructure and the pausing and fixing of Universal Credit.