It said it will cost shops 10 per cent more to employ workers due to the changes, and 13 per cent higher for part-time staff.

Helen Dickinson, chief executive of the BRC, said: “A recent survey of retail finance directors showed that half were planning to reduce hours and workers as a direct result of the employer NIC hike.

“It will be part-time jobs which take the biggest hit.

“Part-time retail jobs hit their lowest level since records began in 1996, and have fallen by 200,000 in the last seven years.

“While the Government’s welfare reforms aim to increase the numbers in work, this week’s cost increases will kick away the ladder for many who are just getting their first foothold.”

Meanwhile, the chief executive of pub giant Greene King said its investment plans would be impacted as a result of swallowing larger-than-expected costs following the October budget.

Nick Mackenzie told the PA news agency: “Everyone in the industry is facing a barrage of costs that are hitting them at the same time, with the minimum wage rise, NICs, business rates.

“We are still investing heavily but there are areas where we have trimmed our investment plans because we have to be sensible about managing these costs.”

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