Tony Blair has urged City firms to grasp the olive branch being offered to them by Labour’s left-wing leaders, in a surprise endorsement of the political party’s approach by the former UK prime minister.

In an exclusive interview with Financial News Blair reiterated his long-held opposition of Jeremy Corbyn’s policies but acknowledged the Labour party leader could win the next general election and so it was “sensible” for financial institutions to engage with shadow Chancellor John McDonnell.