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The CBI has responded to John McDonnell’s speech.

Carolyn Fairbairn, CBI Director-General, said:

"Business shares the Shadow Chancellor's aim of a fairer economy. But too many of Labour's policies would make this harder to achieve, harming the very people they are trying to help.

"Who would turn down a four day week on the same pay? But without productivity gains it would push many businesses into loss. The inclusive ownership fund grabs headlines, but would amount to a tax on workers, pensions and savings. Add these ideas to mass renationalisation, rising business taxes and ongoing Brexit uncertainty, and we risk hanging a closed sign on the door of our open economy.

"A growing economy built on fairness can only be delivered if business and government work together. Yet here was a speech from the Shadow Chancellor with no mention of the huge contribution business makes, its importance to jobs, investment and prosperity. Only through partnership can a net-zero economy be achieved, wages increased, and new technologies harnessed to the benefit of all.

"Business has ideas and ambition to match Labour’s. It is time for Labour to root its polices in reality, not ideology. Firms have consistently offered to help shape an economy where prosperity is shared more widely. That offer still stands."