Business leaders have warned that a Jeremy Corbyn government would put the economy in the “deep freeze” and “crack the foundations” of prosperity, as Labour unveiled plans to seize control of swathes of industry.

John McDonnell, the shadow chancellor, was accused of treating business as “the enemy” as he pledged to end “vast executive salaries”, sack bosses of renationalised companies and snatch away profits from successful firms.

He also hinted that Labour could re-endorse Clause IV, the socialist mission statement adopted in 1918, arguing that its “principles are as relevant today” as they were 100 years ago.

The original version, which committed Labour to nationalisation of industry and utilities, was dropped by Tony Blair in 1995 after he said it made the party unelectable.

The heads of some of the country’s biggest trade bodies said that Labour’s “blind ideology” would drive businesses abroad, hit pensions and drag down living standards.