“We must dismantle the crime gangs facilitating breaches of our borders,” the prime minister said.

Under the proposed measures, which are yet to be finalised, UK-based individuals and financial institutions would be banned by law from dealing with sanctioned groups.

The government will bring forward new legislation for the scheme, drawn up by government sanction experts alongside law enforcement and Home Office staff.

Foreign Secretary David Lammy will set out further details in a speech on Thursday.

Ahead of his address, he said the measures would “help to prevent, combat, deter and disrupt irregular migration and the smuggling of migrants into the UK”.

In 2024, the number of people detected crossing the English Channel in small boats was up by a quarter, from 29,437 in 2023 to 36,816.

However, this was lower than the record 45,755 seen in 2022.

Under enhanced powers to tackle people smuggling announced in November, the UK’s Border Security Command was given permission to freeze smuggling networks’ bank accounts.

Meanwhile, ministers announced new laws allowing travel bans, social media blackouts and phone restrictions for suspected people smugglers earlier this month.

Shadow foreign secretary Priti Patel said Labour had “no credibility on dealing with the evil trade in people smuggling”.

“In Parliament they voted against tougher punishments and life sentences for people smugglers, abolished the Rwanda deterrent and campaigned in favour of the rights of dangerous criminals and foreign national offenders, over the safety of the British people.”