The 'winner takes all' society where a financial elite is wielding the axe

Richard Lambert, director general of the CBI, outlined the nightmarish vision as he urged secretive private equity firms to be more open.

He said growing unease among workers over job security was caused partly by a surge in the numbers of firms being snapped up by overseas rivals.

Foreign ownership of firms has risen from 30 per cent to 50 per cent in the past decade. BAA, O2 and Abbey National, have all fallen into the hands of overseas firms in the last few years.

Mr Lambert said: "All this is loosening the bond that used to exist in most kinds of long-term corporate relationships, whether it be between owners and managers, between companies and investment institutions, or between employers and employees."

He singled out the private equity industry as typifying 'the new capitalism'. These groups - labelled 'asset strippers' by unions - have taken over household names such as Boots and the AA.

The industry has also been under fire for exploiting a tax loophole that allows bosses to pay less tax than those who clean their homes.

Mr Lambert said: "Small numbers of highly incentivised managers are able to earn large multiples of their employees' wages. An even smaller number of financiers can realise fortunes running into billions of dollars in a remarkably short period of time."

Despite this, he said there should be no changes to the capital gains tax system that would deter entrepreneurs.

He said the global business community had brought substantial benefits, but something should be done about the uneven distribution of wealth that comes from this growth.