Corbyn is business's second-biggest worry after Brexit

The prospect of a Labour government led by Jeremy Corbyn ranks next behind Brexit as the biggest worry for business leaders, a poll showed.

Brexit is one of the three biggest headaches for 51% of senior business people followed by a Labour government on 38%, the poll by business lobby group London First found. High taxes and improving productivity were only cited by a quarter of respondents.

Almost a third (31%) of chief executives, finance directors and board members expect Labour to win the next election and more than two thirds (69%) think the next election will be early – before May 2022. More than half (55%) expect a Conservative-led government though most of those believe it will be a minority government.

Corbyn has proposed nationalising industries such as rail and water and wants to increase corporation tax and introduce a £10 an hour minimum wage. Despite this, a third of respondents in the poll, conducted by Britain Thinks, said Labour was best for business, compared with two thirds for the Tories, which traditionally get the business vote.

Jasmine Whitbread, chief executive of London First, said: ​"Business has been focused on contingency planning for Brexit but a future Labour government is being added to the agenda. Labour’s intention to invest in housing and infrastructure is seen as a good thing by many but there’s real concern that the party could scare away much needed private-sector investment. Business and the Labour party need to build much stronger links."

More than three quarters of the 100 companies surveyed said they were preparing for a Corbyn government but mainly through informal steps. A fifth admitted they were not familiar with Labour policies and only a third though UK business was ready for Corbyn taking power.

The poll was reported earlier in the Financial Times.