The Liberal Democrats’ promise to be the “natural home for business” has been welcomed by industry bosses, whose approval for the party’s centrist policies from infrastructure to skills training was tempered by the consensus that it would have little chance to enact them.

The Lib Dems’ headline pledge to stop Brexit has proved popular with many businesses given worries over the impact on industry when the UK leaves the EU. But given that no one realistically expects the fourth-largest party in the last parliament to win an overall majority, most are hoping the Lib Dems will curb the more extreme instincts of either of the two main parties in the event of a hung parliament or coalition.

“The Liberal Democrats could be the kingmakers in this election,” said Paul Drechsler, chairman of Bibby Line, the Liverpool-based shipping group, and former president of the CBI.

“We are looking at two extremes in the other parties, neither with tremendous appeal for business,” he said, referring to Labour’s nationalisation plans and the rightwing push among the Conservatives to leave the EU with a hard Brexit.

“The Lib Dems could help lead to a brilliant deal with the EU if working with the Conservatives, or soften the edges of the Labour policies,” he added.

He said the Lib Dems had been holding conversations with many different business groups in the run-up to the manifesto launch but believed that for many business people the Conservatives would remain the “safe” vote against Labour’s nationalisation programme.

“There are some sensible policies in the manifesto around training and childcare, but it will be hard to get members to pore over every detail as it is unlikely they will get to form a government,” agreed Edwin Morgan, head of policy at the Institute of Directors.

“They could have a moderating effect on some of the policies of either side in a situation where there is no majority — for example, on a future relationship with the EU. We worked with them during the coalition government and they were open to business views,” referring to the party’s deal to prop up the Tories in power between 2010 and 2015.

The manifesto outlined proposals to invest £130bn in infrastructure, including improving transport links and fibre broadband across the UK.

CBI director-general Carolyn Fairbairn welcomed the commitment “to work hand-in-hand with businesses to create a fairer and sustainable economy” by tackling regional inequality, supporting parents and encouraging start-up businesses. She also flagged the party’s plans to raise R&D spend to 3 per cent of gross domestic product and address affordable housing.

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The Lib Dems want to create a local banking sector dedicated to the needs of small and medium-sized businesses, expand the reach of the British Business Bank to provide access to capital for bigger businesses and give more money to help improve high streets.

The party also wants to encourage employee ownership by giving staff in listed companies with more than 250 workers a right to request shares and putting employee representation on remuneration committees and boards.

But Dame Carolyn said proposals on the minimum wage and flexible working would not deliver on their objectives, and described proposals to electrify all rail lines and ensure all new cars were electric by just 2030 as “very challenging”.

Corporation tax would be raised from 19 per cent to 20 per cent under the Lib Dem plans, while the party would replace business rates with a commercial landowner levy based on the land value of commercial sites, and shifting the burden of taxation from tenants to landowners.

This was met with some scepticism. Dame Carolyn had called the plan “mired in complexity”, while Richard Lloyd, property partner at law firm Pinsent Masons, said: “Moving the burden of cost to landlords could prompt concerns that rents will increase to compensate for additional costs incurred by property owners.”

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