The hike in National Insurance contributions is leading to job cuts and lower pay, Chancellor Rachel Reeves has been warned.

Businesses trying to absorb the impact of the increase are trimming costs in other ways, such as by reducing their annual pay increases, a study has concluded.

Ms Reeves' announced the £25 billion National Insurance raid in her first Budget, with the increases coming into effect in April this year. But the move has "weighed on growth", the Bank of England found.

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