Rachel Reeves has been forced to drop a major policy announcement from her Labour Party Conference speech after top Tories including Jeremy Hunt ran interference.

The shadow chancellor was planning to unveil a British infrastructure council in Liverpool next week, as part of a campaign to show the party can be trusted with the economy.

But five companies involved, Aviva, Lloyds, Fidelity, Phoenix and Blackstone, pulled out after the Tories got wind of the move.

According to the Times, Mr Hunt, the Chancellor, rang senior executives at one first personally to argue that such a move would be seen as political.

A source at one firm told the Times: ‘We didn’t want it to look like we were supporting Labour. We wanted this to be non-partisan.’ 

Labour is understood to be pressing on with plans to form the council, although it is unclear how many will now take part. 

According to the Times a draft of Ms Reeves’ speech was due to say: ‘I want Britain’s industries to thrive and for us to stand proud on the world stage once more. I want working people to feel the benefits of economic growth, good jobs and pride in homegrown industry. 

‘That is why I have announced Labour’s plan to invest in Britain. A plan to make, do and sell more here at home. With an aim to restore investment as a share of GDP to the level it was under the last Labour government. 

‘Billions of extra spending, by business, on what they need to compete: new machinery, new buildings and new innovations.

‘Today I can announce that Labour will form a new British Infrastructure Council, tasked with unleashing the lifeblood of investment through the industrial arteries of this country.

‘And I am pleased to say that leading investors, with assets totalling £90 billion, have agreed to join that council and to work with us in opposition as we develop our plans.’

A Labour source told the paper: ‘Labour is in advanced discussions with a number of businesses about joining a new council in an independent advisory capacity.

‘These have been very productive discussions and are a sign of the Labour Party’s commitment to working in partnership with business.

‘The decision was taken not to announce at conference following discussions with the businesses involved, but it’s happening and we are looking forward to it.’