Business bosses have voiced their frustration surrounding the hike in National Insurance and minimum wage ahead of today's leaked budget.

Labour Chancellor Rachel Reeves will set out her spending, in a budget already described as ‘painful’ by the Prime Minister.

Miranda Barker, chief executive of East Lancs Chamber of Commerce said: “I think there is a lot of concern about the measures that have been leaked.

“By just putting it on the employees’ side of things means they are taxing every business even if they have made a loss and they are pushing down the willingness and ableness to employ people.

“It is more pressure on them and that is a really worrying sign.”

Employers currently pay National Insurance of 13.8 per cent on a worker’s earnings above £175 a week, but this is expected to rise this week.

The Treasury will also lower the threshold for when employers start paying the tax, according to reports.

Experts have warned that a rise in employer contributions could reduce hiring, wages and pension contributions, hurting businesses including pubs, hotels and restaurants.

Ms Barker also expressed how she hopes the new government will “live up to the hype” and create positive co-investments and remove some of the barriers to economic success.

She added: “It has to be the right balance of positive carrots to make the economy go forward. If the taxation is applied incorrectly, you shrink your business community and you don’t get the income you are after from anywhere else.”

However, despite years of uncertainty following the pandemic, Ms Barker says that most businesses in the area are feeling confident about their medium-term ambitions.

Businesses in the area have managed to keep their spirits high but uncertainty surrounding this budget has led to a state of paralysis.

Ms Barker said: “The business community from autumn was looking forward medium term and the vast majority has been positive.

“They felt they had full books and kept their profitability in the medium term right up until the election was announced.

“However, since the election they have been in a state of paralysis and sitting and waiting to see what will happen in this budget.

“Businesses are sure of what they are doing, we need government to co-invest, and it would be nice to have a combined authority and have an investment zone.

“The community has a lot of pent-up positivity to give and the government should be trying to accept that and co-invest.”

Both Prime Minister Keir Starmer and Ms Reeves have refused to rule out a rise in employer contributions in the budget on October 30, as part of plans to plug, what the government have called, a £22bn black hole in public finances.

The Chancellor told MPs: “Small businesses and high street businesses are the lifeblood of all of our communities, and it is important that we support them.

“In our manifesto, we committed to have reform of our business rate system.

“I’ll be setting out more details in the Budget, as well as a business tax roadmap, because a business tax roadmap is what will give businesses certainty about the tax environment that they will be working with for the next five years.”