On Thursday, figures showed the UK economy grew by 0.1% in November fuelling concern that growth could remain stagnant for some time to come.

The Conservatives have accused the chancellor of “burying her head in the sand” and called for an “urgent change of course”.

The Liberal Democrat’s Treasury spokeswoman Daisy Cooper said Reeves had “put the handbrake on the economy with her misguided jobs tax” – a reference to the rise to the National Insurance paid by businesses.

The rise has drawn criticism from businesses who have warned it could lead to price rises and inevitable job losses.

On Friday, the boss of retail giant Next said the tax change could make it “harder for people to enter the workforce”.

Lord Wolfson told the BBC that Next’s wage bill is set to rise by £70m, leading to a cut in the number of employee hours worked – either through fewer workers or fewer hours per employee.

He called on the government to stagger the changes to avoid jobs or hours being cut.

Officials figures released on Friday showed retail sales volumes in the UK fell 0.3% in December, despite analysts predicting a 0.4% increase.

Hannah Finselbach, a senior statistician at the Office for National Statistics, said the drop was driven by a “very poor month” for food sales, which in December sank to their lowest level since 2013.

However, it was a “better month” for clothing stores and household goods shops, where retailers “reported strong Christmas trading”, she added.