More than half of UK firms plan to put up prices after Labour’s £25bn National Insurance raid on employers, with one of Britain’s biggest retailers calling the Budget a “punch in the face”, writes John-Paul Ford Rojas.

A Bank of England poll of finance chiefs at 2,000 businesses found that 54 per cent of companies are likely to increase prices, with the same proportion also expecting to employ fewer staff.

The figures also revealed that 38 per cent would pay lower wages and 59 per cent would swallow some of the hit in the form of lower profits.

Mike Ashley’s Frasers Group was the latest company to condemn Chancellor Rachel Reeves’ £40bn total of tax hikes.

Michael Murray, Ashley’s son-in-law and Frasers chief executive, said: “Not only are they going to add a minimum of £50m to our costs next year, but consumer confidence has also been destroyed, so it really has been like a punch in the face.”

The retailer lowered its annual profit guidance by £25m to between £550m and £600m, sending its shares down 10.7pc, or 79p, to 662p.