The falling cost of running a business should mean a rise in wages for workers, Prime Minister David Cameron is expected to tell bosses in a speech today.
Speaking at the annual British Chambers of Commerce conference in London, the Prime Minister will urge businesses benefitting from economic growth to reward staff, according to the BBC.
“Economic success can’t just be shown in the GDP figures or on the balance sheets of British businesses but in people’s pay packets and bank accounts and lifestyles,” he will say.
“The most recent figures show that wages are already growing faster than inflation and as the economy continues to grow it’s important this continues and that everyone benefits.
“Put simply - it’s time Britain had a pay rise.”
In 2014, the British economy grew at its fastest rate since 2007, but despite above-inflation increases in wages in September, October and November, earnings in real terms are still below pre-financial crisis levels.
Deputy director-general of the Confederation of British Industry, Katja Hall, said any wage increase needs to go hand in hand with rising productivity.
“Basing wage increases on temporary market movements seems to be at odds with the long term economic plan,” she added.
The speech comes as the Low Pay Commission prepares to make its recommendation to the government for the national minimum wage. Any changes to the current £6.50 an hour rate will come into effect in October, 2015.
Last month, retailers and business groups expressed concern about the strain an above-inflation rise in the rate could place on employers.