Financial leaders and party insiders warn Starmer: we need less gloom, more optimism

PM told his downbeat tone risks putting off investors and that his conference speech must temper realism with hope

The government's gloomy diagnosis of the state of Britain is imperilling the private investment needed to secure economic growth, City figures are warning, amid widespread calls for Keir Starmer to inject more optimism in his Labour conference speech later this month.

The prime minister has spent his first months in power setting out the dire inheritance his party has been left by the outgoing Conservative government, most notably a 22bn black hole left in the public finances this year. The forthcoming spending review is set to uncover an even bigger shortfall over the next two years.