A prominent US chief executive has urged business leaders to press politicians to agree on a solution to the country’s debt problems as concern rises that gridlock in Washington is damaging the economy.

Writing in today’s Financial Times, David Cote, Honeywell chief executive, warns that the lack of political will to tackle the issue is creating uncertainty for companies facing investment and hiring decisions, and could lead to years of low growth or even another financial crisis.

Tax cuts introduced under George W. Bush, former president, will expire at the end of the year as automatic spending cuts kick in. Disagreement between Democrats and Republicans over how to avoid this “fiscal cliff” has raised fears that the stand-off is holding back the US recovery.