Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Prime Minister calls for wage rises

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.

@LukeToddUK

Readers' comments (2)

  • Yet another politician looking to get re-elected. Most independent retailers pay their staff as fairly as possible and according to their businesses' ability to support that pay. The last thing we need is advice on running our businesses or ethics and morals from any of these characters.

    Unsuitable or offensive? Report this comment

  • Does Mr Cameron actually know anything about the rest of the country other than London-no green shoots in the North David-the ground is still frozen!!
    You wouldn't be looking for some votes would you?

    Unsuitable or offensive? Report this comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.