Business finds minimum wage of £5.30 had to swallow

The British Chambers of Commerce (BCC) has said business will strongly reject any government plans for a £5.30 minimum wage.

The minimum wage will rise by 9% to £5.30 if Labour wins the General Election, Tony Blair is expected to announce today.

However, in a survey of 1,200 businesses, the BCC said 80% rejected such a large increase.

David Frost, director general of the British Chambers of Commerce, said British businesses had supported a National Minimum Wage but last year it rose at more than five times the rate of inflation. 

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“Businesses have endured these massive annual increases in recent years and now is the time for restraint,” he said. “Increases at this rate are simply not sustainable and could have a serious impact on jobs and competitiveness.”

The main findings from the survey include:

• 80% of businesses wanted a cap on future increases to be introduced
  
• 53% either agreed or strongly agreed that further large increases would adversely impact on staffing levels
  
• 52% either agreed or strongly agreed that further increases would harm their competitiveness.