Former Google boss Eric Schmidt admitted he was “shocked” a Labour Government is “in favour of growth”.

The tech tycoon, sitting next to the Prime Minister, backed plans to slash red tape, adding: “the cost of capital and delay is killing you”.

But in an apparent sign of unease among business leaders over a Labour government, Mr Schmidt told the Prime Minister: “I was shocked when Labour said it was in favour of growth”.

Some employers fear tax hikes in the upcoming Budget may hit plans to hire more staff and grow their businesses.

And Mr Schmidt warned Sir Keir he will fail to meet his 2030 energy goal unless he fixes the “delay” involved in regulation in the UK which is “killing you”.

Eric Schmidt alongside Prime Minister Sir Keir Starmer (Image: Getty)

Former Google boss Eric Schmidt speaking at the UK’s investment summit (Image: Getty)

He told the Prime Minister in a Q&A at the investment summit: “Democracies, especially something as old as this one, have so many ways in which people can say no.

“I’d much rather – and I think the business community would much rather – have a single person who can say yes or no … and then they can move on.

“The cost of capital and the delay is killing you, and furthermore you’re not going to achieve your 2030 energy goal, which is laudable, without fixing this.

“You have a tactical leadership problem to achieve this and I think you can pull it off, but you have to figure out a way to get control.”

The Prime Minister replied: “I think this is a really big challenge, it has to be a cross-Government priority, not just within the Treasury team.”

He added that “we are setting up some of the structures that will do this” and repeated that the Government’s central question would always be: “Does this promote growth or does it not promote growth?”

Sir Keir said it is “time to upgrade the regulatory regime” as he pledged to “rip up” bureaucracy.

He said the Government will “make sure that every regulator” in the country takes growth “as seriously” as businesses.

He was speaking at the start of the International Investment Summit on Monday, which is expected to see the Government unveil deals in AI, life sciences and infrastructure.

He told attendees: “It’s time to upgrade the regulatory regime, make it fit for the modern age, harness every opportunity available to Britain.

“We will rip up the bureaucracy that blocks investment. We will march through the institutions and make sure that every regulator in this country – especially our economic and competition regulators – take growth as seriously as this room does.”

He also said that businesses could share any “frustrations” with the Government, adding: “We’re united behind growth, our door is open.”

The summit comes following a bruising few weeks of headlines for the Government involving Number 10 turmoil and the freebies row, but the Prime Minister promised to “think in years” rather than “the days or hours of the news grid”.

In his keynote speech at Guildhall, he said: “We’ve got our problems, of course we have, as I’ve said our public services need urgent care, our public finances need the tough love of prudence – challenges we can’t ignore.

“Because we know, just as every leader here knows, that those early weeks and months are precious, and no matter how many people advise you to ignore it, that you must run towards the fire to put it out, not let it spread further.