City centres could become “ghost towns" if the prime minister does not do more to encourage workers to go back to the office, the head of the CBI says.

Dame Carolyn Fairbairn said allowing staff to work from home had helped keep firms afloat during the pandemic.

But as offices stood empty, thousands of local businesses that relied on the passing trade were suffering, she said.

It comes as a BBC study found 50 major UK employers had no plans to return all staff to the office full time.

Writing in the Daily Mail, Dame Carolyn said the UK's offices were "vital drivers" of the economy, supporting thousands of local firms, from dry cleaners to sandwich bars.

“The costs of office closure are becoming clearer by the day. Some of our busiest city centres resemble ghost towns, missing the usual bustle of passing trade.

“This comes at a high price for local businesses, jobs and communities," she said.

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She said getting people back into offices and workplaces should be “as important” as the return to school, and directly appealed to Boris Johnson to “do more to build confidence”.

This could include using "effective test and trace” systems or a campaign to encourage commuters back on to public transport.

Lloyds Banking Group is reviewing its office space needs and working practices after concluding that most of its 65,000 staff have worked effectively from home during the crisis.

Others including NatWest, Fujitsu, Facebook, Twitter and HSBC have also said they plan to allow much more flexible working in future.

Experts say it could allow firms to cut their rent and utilities costs, while offering employees a better work-life balance.

Communities harmed

Dame Carolyn acknowledged home working had worked well for many and was likely to remain "an option".

But she warned of “serious downsides" including a lack of opportunities to train young people and foster better work and productivity in certain types of business.

The impact on local businesses has also been stark. Sandwich chain Pret a Manger - which relies on a lunch- time work crowd - said in June it was shutting 30 outlets and cutting 1,000 jobs amid a slump in demand. It has also cut its staff's hours.