An election victory “is not in the bag” for Labour, the head of Britain’s largest small business lobby group has said, after Rishi Sunak called a snap general election.

Federation of Small Businesses (FSB) national chairman Martin McTague said each party “needs to win the votes of these business owners” if they are to secure victory on July 4.

Mr Sunak called the election on the day official figures showed inflation returning to its normal range from the Bank of England’s target, from 3.2pc to 2.3pc in April. 

Yet Labour leads the Conservatives heavily in the polls.

Mr McTague told BBC Radio 4’s Today programme: “We are seeing increasing confidence with our members but it is very hard to interpret whether that is because they have confidence in the Conservative Party’s management of the economy, or they are starting to feel confident about an incoming Labour government.

“We know it is not in the bag. Either party needs to win the votes of these business owners.”

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