British Chambers of Commerce calls for 'cap' on minimum wage

Further increases in the national minimum wage will damage UK competitiveness and could lead to job losses, the British Chambers of Commerce (BCC) has warned.

A survey of 1,200 businesses carried out by the BCC revealed that eight out of ten wanted future increases to the minimum wage to be capped.

Of these, 50% believed that the increases should be capped in line with inflation, while 30% felt the cap should be linked to national average earnings.

David Frost, BCC director general, said, 'Business has sent a powerful message that the minimum wage increases must be capped to limit the impact on employment and competitiveness'.

The adult national minimum wage was increased from £4.50 to £4.85 an hour on 1 October, and a new rate of £3 an hour was introduced for 16 and 17-year-olds.

The Low Pay Commission has now ended its consultation on next year's minimum wage rate, and will make its recommendations to the Government next February.

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