In a fierce backlash against the pledge, unveiled on Sunday, Katja Hall, CBI deputy director general. said the minimum wage is already at the “highest rate it can be without putting job creation at risk”.
The minimum wage has climbed from £5.93 an hour to £6.31 an hour since 2010, outstripping the growth in average earnings. It is due to increase to £6.50 an hour by October.
The pair also warned against politicians meddling with the minimum wage, saying that it would hurt economic growth in the long term.
“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,” said Ms Hall.
Mr Longworth meanwhile said the government “should not intervene in such matters, unless there is market failure”. He added: “Politicians should instead focus on implementing policies to raise productivity and improve skills in the workplace, which are the keys to higher wages for all.”
The pair stressed that the Low Pay Commission, a Labour invention, was already tasked with balancing the minimum wage with job creation and long-term economic growth.
“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,” said Ms Hall, adding that it is “not for politicians to play politics with”.
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