Starmer and Reeves will hold a meeting in London's historic finance centre with leading chief executives including Lloyds Banking Group's Charlie Nunn, BT's Allison Kirkby, Tesco's Ken Murphy and BAE Systems' Charles Woodburn, the government said.

At the meeting, Starmer and Reeves will announce plans to allow corporate pension surpluses that are worth more than 100 billion pounds ($124 billion) to be released and reinvested.

"To achieve the change our country needs requires nothing short of rewiring the economy," Starmer said in a statement before the meeting. "It needs creative reform, the removal of hurdles, and unrelenting focus."

The meeting comes before Reeves is due to give a major speech on Wednesday where she will outline her plans to revive Britain's stagnant economy.

The speech will be closely watched after a rise in global borrowing costs earlier this month demonstrated how tight Britain's public finances are. This led to speculation that Reeves may need to cut spending or raise taxes to keep to her self-imposed rules that limit borrowing.

Reeves and Starmer promised voters ahead of last July's election that they would turn Britain into the fastest-growing Group of Seven economy.

But since Labour Party took power, the economy has lost momentum with many employers blaming Reeves' first budget plan which included an increase in the tax burden on businesses.

The new plan will allow the pension surpluses to be reinvested back into companies or used to provide better employee benefits, rather than kept in safer but lower-return assets such as government bonds.

Downing Street said about 75% of corporate defined-benefit pension schemes are in surplus, worth 160 billion pounds, but restrictions have meant that businesses have struggled to invest them.

A report by industry body Pensions and Lifetime Saving Association last year broadly supported more surplus sharing, but said surpluses could change based on market fluctuations.

($1 = 0.8017 pounds)