The Deputy Prime Minister is expected to be dealt a major blow after reports ministers are set to axe plans to give people the “right to switch off” outside working hours. The policy, which was championed by Angela Rayner, was a crucial part of the Government’s manifesto promise of a “New Deal for Working People” designed to bolster employment rights.

The decision to cancel the policy has reportedly been taken by Business Secretary Jonathan Reynolds and Chancellor Rachel Reeves amid concern it would have placed too much of a burden on businesses, the Sunday Times reports. A Government source told the newspaper the “right to switch off is dead”. The policy would have followed similar laws already seen in France, Belgium and Ireland.

It did not appear in the Employment Bill which is currently making its way through Parliament, but there were promises from ministers it would emerge in future.

Ministers are now expected to say in this coming week that the policy has been dropped, when they table a series of amendments to the bill.

They are said to be making the change in a bid to boost business confidence, after the Budget placed extra costs on employers in the form of the National Insurance contributions hike.

Some of Britain’s most famous piers have told the Daily Express Ms Reeves’ Budget is having a devastating impact on the industry.

The Sunday Times’ Government source added: “Growth that puts money in people’s pockets is the number one priority of this Government’s plan for change.

“That means making Britain the best country in the world to do business and a key part of that is removing unnecessary barriers.”

Ms Rayner, who led Labour’s workers’ rights programme while in opposition, has reportedly agreed to the move, although it is unclear how supportive she is.