Business leaders have given a cautious response to a report recommending that workers in the gig economy should be entitled to a range of benefits.

The report is the result of a government inquiry into the growing gig economy and concerns that employers treat workers differently.

It recommends that firms which control and supervise their workers should pay a range of benefits, including National Insurance.

The report's author, Matthew Taylor, said there was a perception the gig economy put too much power into the hand of employers.

He said: "Of all the issues that were raised with us as we went around the country, the one that came through most strongly was what the report calls one-sided flexibility.”

Jo James, chief executive of the Kent Invicta Chamber of Commerce, said:

“While the notion of a wage premium in exchange for working hours is attractive it could have consequences and push up prices elsewhere. A lot of people do have these contracts by choice because they are very flexible and they fit around people’s life styles. So, although it is an area that needs looking out a lot of people are doing it out of choice and it fits round their lives.”

"It is going to put up costs, there is no question about that” - Jo James

“The gig economy is a growing economy and it is important that it is looked at. We do need to recognise that it is not a one-size fits all. There are a lot of people working in the gig economy who do so because they prefer it. It is going to put up costs, there is no question about that.”

She added: “There is a two-way bargain that needs to be struck that gives flexibility and security to both sides.”

“The world of work is changing and I think it is only right that employment law and practices change. Matthew Taylor has rightly recognised that the UK’s flexible employment market is a great source of strength. It looks like he will be offering some commonsense changes.”

"I think civic-minded businesses have considered the impact of these unforeseen consequences and recognise that."