The move is expected to be unveiled in the Chancellor's autumn Budget next week, with a £1m budget for a new investigative team.

Rachel Reeves is set to allocate further funds on clamping down on dodgy businesses that hire illegal workers, in a bid to boost the economy. Illegal working at car washes, takeaways and nail bars will be targeted to relieve pressure on legitimate businesses "undercut" by "unscrupulous" businesses.

The move is expected to be unveiled in the Chancellor's autumn Budget next week, with a £1m budget for a new investigative team to work in coordination with HMRC and Immigration Enforcement to strengthen efforts to chase employers unpaying staff or hiring without the right to work in Britain.

'Rachel Reeves, you must restore the private sector if you really want g

See Full Page