More than 50 small business owners in Hammersmith and Shepherd's Bush have backed a campaign by prospective MP Shaun Bailey against Labour's planned National Insurance increase.

The traders were invited to respond to a letter slamming the proposed one per cent rise, which the Tory candidate claimed would be a tax on the jobs introduced at 'exactly the wrong time in the economic cycle'.

It follows a similar move by Conservative central office urging industry leaders to come out against the increase.

Mr Bailey, who is fighting a closely run contest for the new Hammersmith seat, said: "The response has been overwhelming, with over 50 small business owners signing up to support the Conservatives' plan to stop Labour's tax rise on jobs.

"Small businesses play an extremely important role in the economic health of our country and the health of our communities. The National Insurance increase means it will cost more for small businesses to stay afloat and ultimately it will cost people their jobs."

Gordon Brown claimed last week that the Conservative plan to fun the National Insurance freeze using billions of pounds of extra savings on top of those already announced was 'not believable' and had not been properly costed.