The Chancellor’s National Insurance increase “will make a bad situation for British businesses even worse”, Labour has warned.

Shadow business minister Seema Malhotra raised concerns over the level of inflation as well as “spiralling” energy costs.

But Business secretary Kwasi Kwarteng defended the Government’s job creation record, insisting its “plan is working in terms of bouncing back better from the pandemic”.

Speaking during Commons BEIS questions, Ms Malhotra said: “The secretary of state omitted to mention that inflation is now at its highest level for 30 years. Energy costs are spiralling and the private sector is yet to recover to pre-pandemic levels.

“Does the secretary of state acknowledge that the Chancellor’s very large rise in National Insurance coming in April will make a bad situation for British businesses even worse?”

Mr Kwarteng replied: “We are the fastest growing economy in the G7… we are creating more jobs, we have announced record investments and the Government’s plan is working in terms of bouncing back better from the pandemic.”

Labour’s Ms Malhotra also called on the business secretary to apologise to fraud victims.

She said: “This is a high-tax Government because they’ve created a low-growth economy.

“Can I also raise the secretary of state’s recent claim that fraud isn’t something that affects people day to day.

“Fraud is actually estimated to cost the British economy as much as £52 billion a year, so will the secretary of state accept that he’s got this wrong?

“Will he apologise to the 4.6 million people who are victims of fraud each year and will he tell the House today what steps he will take to do better?”

Mr Kwarteng replied: “I will tell her exactly what steps I will take to do better: I will constantly and always be fighting against their socialism, their windfall tax, their inability to plan ahead and their total lack of remorse for the fact that they destroyed manufacturing jobs in the time they were in government.”

He added: “Our supply of gas is secure. Unlike many EU countries we are not dependent on Russian gas, but much of our supply comes from British territorial waters and from reliable import partners such as Norway.”

Mr Kwarteng claimed the SNP was taking an “extinction rebellion” approach to switching off oil and gas production in the North Sea.

SNP business spokesman Stephen Flynn accused the Government of overseeing the loss of 35,000 jobs in Scotland’s North Sea industry.

Mr Kwarteng said: “To hear the members of the Scottish National Party giving us lectures about energy when they are not committed to nuclear, they are in bed with the Greens who simply want to flick the switch off on oil and gas in their own country – there is an extraordinary arrogance in this.

“I am very happy to compare my record, our record, as job creators with his extinction rebellion approach to the North Sea.”

Mr Flynn replied: “I am afraid the Secretary of State does his reputation no good whatsoever by propagating such unfounded garbage.”

“If he wants to talk about records let’s talk about records, because despite energy being reserved to this place it is the Scottish Government that has delivered the £62 million energy transition fund, it is the Scottish Government that just delivered £30 million to Aberdeen South harbour, is it the Scottish Government that has delivered £15 million to Aberdeen hydrogen hub and, of course, it is the Scottish Government who has just delivered a £500 million just transition fund for the entire north east of Scotland.”