OK, a few points here
- Corbyn doesn't really come into this tbh? Confused.
- The state does not own universities and it does not own local government. I'm not sure it technically owns quangos either. It's vital in a democratic society that universities maintain their operational independence from government, because they're precisely the people we need to be scrutinising what government is doing a lot of the time. This move is a direct attack on that principle. Secondly, local government is not accountable to Westminster, it's accountable to its electorate. Again, operational independence principles should apply, or we may as well abolish local democracy altogether and run everything out of Westminster. If you're going to reduce local government to a question of managerialism rather than letting them make their own spending decisions, then there's literally no point in running it democratically any more.
- You refer to state-owned "businesses", but none of the things discussed here are businesses.
- This measure doesn't force them to do the best work they can, it restricts their ability to do that by making it such that if Westminster hasn't said it, they can't do it. I don't think government ministers, regardless of party, actually necessarily have a better ability to deal with procurement than people on the ground, and this could be extremely damaging because unless ministers do act, very regularly, on this then the incentives for ethical business will dramatically go downhill. And to be honest, if you think this government is likely to produce a stringent set of national procurement guidelines that will include the freedom to boycott companies that are destroying the environment internationally, or arms dealers, then I'm not sure we're living on the same planet.
- In terms of BDS and Israel: I generally oppose BDS, I don't think it's a productive contribution to the situation, if anything it's increasing Israel's siege mentality which makes it less likely that the boycotters will achieve their goal of Israel withdrawing from the West Bank. I also think that Israel is very much singled out in this regard compared to other countries with equally poor or considerably worse records on human rights and other issues. However, I'm not sure that banning councils from boycotting West Bank products is going to decrease anti-Semitic sentiment in the UK, it's attacking symptom (which makes relatively little difference numerically) rather than cause. Also, as I've said, this is not just about BDS/Israel. This stops institutions boycotting goods from the Saudis, or from many other equally horrendous regimes.
Speaking for myself I am (more or less) an academic, in that I'm a member of a university who's primarily doing research. The idea that my institution should be forced to procure without ethical considerations by the government is . The government funds universities because we provide a public good in the research that we do; it does not fund us to be an arm of the state, nor should it. If bodies of researchers - including most of the people who are building our technological future and analysing policy impacts in the present - are not allowed to make political statements in how we procure and how we invest, what kind of a free society is that?
Similarly, I (like everyone else) am a local council elector. I want to be able to actually get my local council to act in a way that I see as ethical, and that may well include, for example, refusing to further enrich the dictatorial autocrats of the Saudi royal family, and it could certainly include thinking when a company is given a contract about whether their record elsewhere is morally, rather than just fiscally, worthy of rewarding with taxpayers' money. Why should the rights of local electors to decide what their councils do be taken away? As local taxpayers that IS our money, and by electing councillors we're deciding how it should be spent.