22 September 2014



CBI responds to Labour Party National Minimum Wage proposals

The CBI responded to Labour Party proposals to increase the minimum wage to £8.00 or more by 2020.

CBI responds to Labour Party National Minimum Wage proposals

Katja Hall, CBI Deputy Director-General, said:
"The minimum wage is set at the highest rate it can be without putting job creation at risk at the moment. It has risen more than average earnings throughout the recession and recovery and is set to increase by more than 3% from October.
"The Low Pay Commission is one of the biggest success stories of the last Labour Government and makes its judgements based on considerable independent expertise. The LPC is not for politicians to play politics with.
"The national minimum wage has enjoyed broad business support and a move to a politicised US-style system is not in the interest of companies or workers.
"Raising wages in this way would put serious strain on businesses, particularly hard-pressed smaller firms with tight margins, which would end up employing fewer people. Instead, politicians should address how people move on in their careers, through training and better skills, helping them move to higher paying roles over time."