Business groups have said the new Labour Government will have “a lot” in its in-tray including an “urgent need to kick-start” growth.

It comes after Labour secured a significant majority in the General Election in the early hours of Friday, with Sir Keir Starmer now set to take over as Prime Minister from Rishi Sunak.

The run-up to the election saw both parties focus heavily on the economy following a turbulent few years which saw household finances hammered by soaring inflation.

Trade bodies and business groups indicated on Friday morning that there is an opportunity for the new Government to drive growth in the coming year.

Rain Newton-Smith, chief executive of the CBI, said: “Delivering sustainable growth should be the defining mission for the new Government.

“Business stands ready to bring its innovation, ideas, and investment to make that shared mission a reality.

“The new Prime Minister has been given a clear mandate to take the tough decisions on areas like planning reform and boosting grid capacity needed to get the economy firing on all cylinders.”

Labour’s economic plans include a new national wealth fund to boost investment, as well as the development of a 10-year infrastructure strategy.

Stephen Phipson, chief executive of Make UK, said: “Business will welcome such a clear result and an end to the political and economic instability of the last few years which is essential for companies to now bring forward much-needed investment.

“Looking ahead, the new Government has a lot in its in-tray to address.

“First and foremost is the urgent need to kick-start the UK’s anaemic growth levels of recent years and boost investment in our infrastructure, without which we cannot address the many urgent priorities the country faces at national and regional level.”

Director general of the BCC (British Chambers of Commerce), Shevaun Haviland, congratulated Sir Keir.

She added: “The public have delivered them a clear and decisive parliamentary majority – hopefully they will use this mandate to provide the stability and certainty businesses crave.

“But after a gruelling election the really hard work starts now.

“We need to see action from day one on pulling together a coherent industrial strategy for the long term, which places a strong emphasis on harnessing green innovation.”

Nevertheless, there was some caution in certain industries over the impact of Labour’s win.

Offshore Energies UK (OEUK) raised worries over plans for further windfall taxes and to stop issuing new North Sea oil and gas licences.

David Whitehouse, chief executive of OEUK, said: “The people in our sector and investors remain deeply concerned over Labour proposals to impose a further windfall tax and end new licences.