Fears have been raised of a spike in food bills amid warnings that Labour could heap more costs on businesses at the Budget.

An industry body said food and drink inflation could reach 5.7 per cent by the end of the year, pointing to the effects of the national insurance raid and new packaging taxes.

Meanwhile, the boss of Aldi has highlighted 'persistent and urgent' pressures on shoppers and sounded alarm on 'ripple effects' of more costs for business.

The grim messages come as the government prepares to push forward with its employment rights overhaul.

Keir Starmer has indicated he will ignore pleas to ease the proposals, which would give workers 'day one' rights to statutory sick pay and protection from unfair dismissal, as well as loosening strike rules.