Central and local government have a huge role to play in supporting businesses and boosting the economy, shadow business secretary Chuka Umunna told public sector accountants today.

Speaking at the Chartered Institute of Public Finance and Accountancy annual conference in London, he told delegates that many of the technologies behind the iPhone were created with US government-funded projects, and the UK central government should step in and invest in business.

The shadow secretary of state said: ‘Globalisation has shaken the world order and the pieces haven't landed yet.

‘Building a more entrepreneurial national needs an entrepreneurial approach from central government.'

Mr Umunna added: ‘We need a vibrant local economy… that's why we see an important leadership role for local government. We really believe the government can play a role in boosting the economy.'

He accused the current government of being ‘fixated on the size of government', calling for a smaller state. But he said: ‘It's not the size that is important, it is what it does.'