The Chancellor has committed to increasing employers’ National Insurance contributions from 13.8% to 15%. The threshold they have to pay will drop from £9,100 to £5,000, resulting in an increase of £25bn.

However, an increase in the employment allowance, which allows companies to reduce their NI liabilities, from £5,000 to £10,500 will provide some relief for employers.

Despite predictions that Reeves could continue freezing income tax thresholds beyond 2028-29, he said they would rise in line with inflation after that.

Reacting minutes after the end of the budget, Ms Guiqui said: “It is a good thing that we are allocating more public funding to a number of things; There’s been a lot of pressure on people over the last few years, especially since Covid. People have to work longer, children stay home longer.