The rise in the minimum wage announced in yesterday’s budget has received a mixed reception from business leaders.
Responding to the 13p rise to £5.93 an hour for adults aged over 21, Adam Marshall, policy director at the British Chambers of Commerce, says: "It is astounding that the Government would increase the minimum wage by 2.2% at a time when private sector wages are virtually flat, and companies across the country are still making tough choices to keep as many people in employment as possible."
The 2.2% rise, which outstrips the 0.4% rise across the private sector as a whole, was also met with derision from the British Retail Consortium (BRC), which has campaigned for a rise of between zero and 1%. It branded the move ‘irresponsible’ in a still-treacherous economic climate.
Director general at the BRC Stephen Robertson says: "A measure of this magnitude should not have been in the Budget speech.
The BRC supports the principle of the minimum wage, but it's sheer madness to be forcing new costs on this scale onto retailers and their suppliers
John Cridland, CBI deputy general
“This increase is downright irresponsible. It's at odds with Government promises of prudence and public sector freezes and will damage retailers' ability to maintain and create jobs.
“How can an increase virtually double that of last year's rise be justified? Economic conditions were far weaker in the run up to this year's decision than 12 months earlier.
"The BRC supports the principle of the minimum wage, but it's sheer madness to be forcing new costs on this scale onto retailers and their suppliers."
However, John Cridland, deputy director general at the CBI, which represents larger employers, called the rise “moderate” and reasonable.
The TUC, perhaps less surprisingly, also welcomed the news.
