Rachel Reeves is set to allocate further funds to clamping down on dodgy businesses that hire illegal workers, in a bid to boost the economy. Illegal working is being targeted to relieve pressure on legitimate businesses “undercut” by “unscrupulous” businesses.

The additional funding is expected to be unveiled in the Chancellor’s autumn Budget next week, with a £1m budget for a new investigative team to work in coordination with HMRC and Immigration Enforcement to strengthen efforts to chase employers unpaying staff or hiring without the right to work in Britain.

It follows a push by the Government to take on illegal working, The Telegraph reports. Last month, the Government said arrests for illegal working have increased to their “highest levels since records began, following an uplift in enforcement action”.

Official figures showed over 8,000 illegal migrants have been arrested after 11,000 raids were carried out by Immigration Enforcement from October last year to September 2025, the Government said.

The Government previously pumped £5 million into Immigration Enforcement under Operation Sterling, focusing on targeting, arresting, detaining, deporting, and returning illegal workers working for fast food delivery services, takeaways, car washes, and beauty salons.

The latest data revealed a 63% and 51% year-on-year increase for arrests and visits, respectively. More than 1,050 foreign nationals encountered on these operations have been removed from the UK.

A spokesperson said providing more money to support enforcement in the Budget will aim to “ensure that law-abiding businesses are not undercut by those ignoring the rules, making the system fairer for all”, the newspaper reports.