Jobs could go as minimum wage is raised, CBI warns

Next year’s increase in the national minimum wage could lead to job cuts, claims the CBI.

The CBI today submitted its views to the Low Pay Commission, the independent body that will recommend changes for an October implementation.

The CBI claims that the increase in the minimum wage to £4 an hour means that companies will have an inflated wages bill to cope with and could respond by reducing levels.

It believes that the minimum wage has worked well so far because it was set up at a prudent level.

By Paul Nelson

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