The Chancellor of the Exchequer pledged his support to help struggling businesses as he visited a delicatessen in Mill Hill this afternoon.

After a tour of Brent Cross Shopping Centre and the Grahame Park estate in Colindale, George Osborne popped in for a coffee and a chat with the owner of Yummies Deli in The Broadway.

Mr Osborne spoke to Lawrence Samuel about his business, which celebrates its first anniversary today, and about how the Government's new employment allowance will help local employers like himself.

From Sunday, the employment allowance will give businesses up to £2,000 off their National Insurance contributions – which will mean Yummies will pay 50 per cent less than it does currently.

Mr Osborne said: “I’ve just been speaking to the owner and he says it’s going to make a real difference and really help him as he grows his business and help him employ people as well.

“For shops on the high street and for pubs and cafes, we have also introduced £1,000 off local business rates to help these high streets regenerate.

“There is encouraging news now that some of the businesses that went bust because of the recession, that were empty, those sites are now being refilled. 

"I think it’s just more evidence that the economic plan is working but also I take from all this that more needs to be done – the job isn’t finished so we’ve got to go on working through that economic plan.”

Mr Samuel, 57, said he was “delighted” to have Mr Osborne visit his delicatessen which he runs with his wife, Allie, 50.

Speaking to the Times Series, he said: “It was a big thrill to meet someone as important as him.

“I spoke to him about the employment allowance and how it will help businesses like us. It gives us a chance to expand quicker, and if we do that then we can employ more people.

“Mill Hill is a great place for cafes, with people sitting on the street having a coffee, so hopefully it might encourage shop owners to come to The Broadway.”