Labour's plan to transfer 10% of share ownership to workers would impact investment in UK companies, says CBI director general Carolyn Fairbairn.

"You've got to remember that we are under the spotlight as a country at the moment," she says.

"Competitiveness is everything, our every move is being watched. Shareholders are watching like hawks and I am in no doubt that share prices would fall. That affects the ability of companies to invest, that in turn affects productivity and pay. It would have an immediate effect."

She explains: "They would fall because what you're effectively doing is taking money from shareholders and giving it to employees. Nothing wrong with that depending on how it is done. But the effect is to dilute shareholders."