Threats that UK industries will be renationalised under a Labour government have potential investors “reaching for their coats”, the head of industry body the Confederation of British Industry has warned.

Paul Drechsler, president of the CBI, said on Monday that Labour’s plans would have such a profoundly negative impact on the UK economy, that it would “hurt those who most need our support and help”.

Warning that the UK “must navigate its way between two significant threats” Mr Drechsler said that talk of the "hardest-of-hard Brexits", and a “nationalising ideology” was putting the prosperity of UK firms at risk.