The CBI business group has warned the Government not to threaten Britain's economy by tougher regulation of flexible working.

The Prime Minister has promised to protect workers in the gig economy such as delivery drivers and workers who get paid for each job they do rather than a fixed wage.

The Telegraph newspaper reports that the CBI regards the UK's flexible labour market as an "invaluable strength" that underpinned Britain's record employment rate and boosted the country's competitiveness.

In a response to Matthew Taylor, who has been commissioned by Prime Minister Theresa May to lead a review into modern employment, the CBI urged policymakers to embrace new ways of working.

The CBI says choice is a critical part of the UK labour market.

It adds that the next Government must rediscover its role as a steward of good employee relations rather than a regulator alone.