Hundreds of British business leaders have called on Westminster to negotiate a better deal for the UK with Brussels.

David Cameron has pledged to claw back powers then offer voters a choice on whether to stay in the European Union in a referendum by the end of 2017, if the Conservatives win the next election.

The new Business for Britain campaign backed the Prime Minister's approach to renegotiation and called for a cross-party "national drive to renegotiate the terms of Britain's membership of the EU".

Ocado chairman Sir Stuart Rose and Next boss Lord Wolfson are among the 500 people associated with businesses from bluechip companies to small firms who have signed up.

They said: "As business leaders and entrepreneurs responsible for millions of British jobs, we believe the Government is right to seek a new deal for the EU and for the UK's role in Europe.

"Far from being a threat to our economic interests, a flexible, competitive Europe – with more powers devolved from Brussels – is essential for growth, jobs and access to markets.

"We urge all political parties to join in committing themselves to a national drive to renegotiate the terms of Britain's membership of the EU."

The group's co-chairman, Alan Halsall, boss of pram maker Silver Cross, said: "We know jobs and economic growth depend on a more flexible, looser relationship with the EU."

JML founder John Mills added: "This campaign is not about taking political sides or backing the right horse – it's about doing what's best for British business. I have been a member of the Labour Party for 40 years, others supporting the campaign are supporters of different political parties or none at all."