George Osborne said on Sunday that a Conservative government would “pick a fight” with Brussels to pull Britain out of a swath of European agreements, to help achieve multi-billion pound cuts in red tape.

The shadow chancellor backed the broad thrust of a Tory policy group report being published this Friday, which will advocate £14bn a year cuts in regulations on business. Its recommendations include the repeal of data protection and working time laws and the review of health and safety legislation.