Jeremy Corbyn will face expensive and unwinnable legal battles with investors if he presses ahead with plans to nationalise swathes of British industry, one of the world’s top law firms has warned.

Amid rising City fear of a hard Left Labour government, a new analysis by the Magic Circle firm Clifford Chance has found that attempts to take control of top companies at bargain prices would face strong resistance in the courts as a violation of human rights and international treaties.

Labour wants to renationalise rail, energy and water companies as well as the Royal Mail, which was privatised in 2014. John McDonnell, the Shadow Chancellor, has said the price would be set by parliament, suggesting shareholders would not get the full market value for their assets.