Party leaders take turns to woo UK bosses with policies on economy

The CBI warned the Labour leader that he must support business if he wants a high-growth economy, rather than portraying it as “the root cause of inequality”.

The business lobby group also questioned Labour’s “false instincts” for mass nationalisations and enforced employee ownership schemes, which it said would stop foreign investment in the UK and leave pensioners and savers to foot the bill.

It came as Mr Corbyn, Boris Johnson and Lib Dem leader Jo Swinson attempted to woo business leaders with speeches at the CBI conference.

Mr Corbyn has already sent businesses into panic mode in early stages of the election campaign, with last week’s announcement of a free broadband scheme going down like a lead balloon over fears it would cost five times more than the party’s estimate of £20bn.

In his speech Mr Corbyn went on the offensive, dismissing as “nonsense” claims he was “anti-business”, and instead insisting that a Labour government would bring “more investment” to businesses than they have “ever dreamt of”.

He promised “world-leading” infrastructure and said he made no apologies for pledging to bring some key services into public ownership, saying nationalisation was “the norm” in many European countries.

The Labour leader also hit out at Mr Johnson’s Brexit deal, saying it would subject the country to “years of drawn-out, bogged-down negotiations”.

He said: “Our plan, on the other hand, will get Brexit sorted quickly and immediately end the uncertainty for business and our communities because we won’t be ripping up our main trading relationship because major British industries like steel will struggle to survive in a deal with the USA promoted by President Trump.”

And Mr Corbyn said: “I just want to live in a decent society. And I know you do too. It doesn’t have to be an either/or choice because the opportunities created for businesses under a Labour government will be immense.”

The Labour leader used his speech to announce 320,000 new ‘climate’ apprenticeships, which he said would train 80,000 people a year to work in a new green economy.

But his efforts to convince delegates that Labour was pro-business suffered another blow when he was unable to name a single FTSE 100 firm that he admired.

Carolyn Fairbairn, the CBI director general, said: “It’s time to see Labour open the door to real and lasting partnership with business, not stick with outdated ideologies that would close it in their face.

“The challenge is not what Labour want to achieve, it’s how. Firms share many of the same ambitions, on skills, climate change, delivering high-paid jobs and making sure that the proceeds of growth are felt across the country – but those challenges need a joint response.

“Some of Labour’s proposals do open the door to partnership. Greater flexibility on the apprenticeship levy is something firms have long asked for. A step up in all forms of vocational training for school leavers and those switching careers offers opportunities and works for the economy.

“Reskilling the economy and adapting for increased automation is critical, and apprenticeships can have a big role to play in this.

“But false instincts for mass nationalisations and forcing inclusive ownership schemes onto thriving businesses does little more than frighten off investors from backing the UK, with pensioners and savers having to foot the bill.”

“A high-growth, fair mixed economy is within our grasp, but only if business is welcomed and supported as a provider of opportunity, not falsely portrayed as the root cause of inequality.”

In his speech Mr Johnson announced he would cancel a planned corporation tax cut to free up to £6bn for the NHS, alongside a range of measures to boost the economy including a cut to business rates and national insurance contributions.

He told delegates: “I hope you won’t mind if I also announce today that we are postponing further cuts in corporation tax.

“And before you storm the stage and protest, let me remind you this saves us £6 billion that we can put into the priorities of the British people, including the NHS.”

The PM pledged to level up success across the country, saying it was wrong that some areas had lower productivity, life expectancy and educational success than in London.

“Our ambition is to unlock the whole of the nation’s potential,” he said.

He said his Brexit deal would be good for businesses, before hailing the Conservatives record on start-ups, claiming the UK had seen more firms created than in Germany and France combined since 2010.

Rishi Sunak, Chief Secretary to the Treasury, said the figure included 122,000 businesses in the West Midlands. “Our announcement will further unleash business potential across the region,” he added.

The CBI broadly welcomed the Tory plans, but said postponing cuts to corporation tax would only work for the country “if it is backed by further efforts to the costs of doing business and promote growth”.

On Mr Johnson’s Brexit deal, Dame Fairbairn, said: “Unnecessary deadlines and damaging cliff-edges should be replaced by taking the time needed to secure a sustainable, ambitious relationship.”