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Retailers call for cap on national minimum wage rise

Business Any rise to the national minimum wage must not exceed average earning growth, retailers have warned the government.

Any rise to the national minimum wage (NMW) must not exceed average earning growth, retailers have warned the government.

The British Retail Consortium (BRC) is calling for national minimum wage increases to be kept to "affordable levels".

It is suggesting that the rate is raised no more than 2.1 per cent and has called for greater clarity on the future levels of the NMW.

The consortium, who represent the interests of retailers in the UK, have called for the cap in a letter to the chancellor George Osborne. The autumn statement will be announced tomorrow and will provide an update on the government's plans for the economy.

"Increases to the NMW must not undermine the sector's ability to maintain and create employment. A rise above average wage movements would have precisely that effect," warned BRC director general Stephen Robertson.

The retail sector was successfully providing flexible employment to many employees and full-time employment for many 16-19 year-olds, he explained in his letter.

His calls were echoed by Boots finance director and BRC board member Toon Clerckx, who said retail played a strong role in "tackling youth unemployment" in the UK.

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