A Tory victory in next week's election would unleash a wave of investment and deal-making, analysts and bankers have said – ending a year-long slump in corporate spending and boosting wages and employment.

Despite months of confusion over Brexit, the Conservatives have emerged as the clear favourite among businesses as bosses prepare to spend billions of pounds sat on the sidelines in anticipation of a Tory government with the power to end Westminster's stalemate.

The Bank of England estimates that non-financial businesses have roughly £423bn in cash waiting to be used, up £70bn since the referendum.

Private equity investors have an estimated $152bn (£116bn) in dry powder ready for deployment in Britain, while fund managers are holding £400bn in uninvested cash according to the Investment Association.

Speaking off the record, investment bankers at several major firms have said a string of tie-ups are in the pipeline and ready to go when the fog of uncertainty clears.

Economist Gerard Lyons, seen as a candidate to become the next Bank of England Governor, said: "Overall I think our future relationship with the European Union, plus our domestic agenda plus our ability to start cutting global trade deals should make the UK far more attractive as an investment destination.”