LABOUR has demanded an apology from the Confederation of British Industry (CBI) after it privately admitted to exaggerating the cost of Jeremy Corbyn’s nationalisation plans.

A leaked email exchange shows the big business lobby group conceded that its statistics published on Monday were incorrect.

The CBI had claimed that public ownership plans outlined in Labour’s 2017 manifesto would cost £196 billion in taxpayers’ money.

In response, a Labour figure asked the CBI why it thought the party would buy back trains from rail operators, which is not its policy.

A CBI representative then told Labour: “We have assumed the rolling stock would be bought into public ownership as the trains are currently owned by the private sector and therefore full-scale nationalisation of rail would require this.

“However, we recognise that this isn’t official Labour policy on nationalising the rail industry.”

However, the bosses’ club refused to divulge more details about its calculations, saying in the email exchange that their “members do not feel comfortable” explaining exactly where the £196bn figure came from.

Labour shadow transport secretary Andy McDonald demanded an apology from the CBI director Carolyn Fairbairn, saying: “The CBI’s shoddy research and shabby conduct does a great disservice to our political debate during the hugely challenging times through which we now live.

“At the very least, I would expect an apology from Carolyn Fairbairn over the distorted misrepresentations her organisation has sought to peddle.”

Shadow chancellor John McDonnell added that an apology “wouldn’t go amiss.”