Reacting to the planned increases in the National Living and Minimum Wages, Jane Gratton, Deputy Director of Public Policy at the British Chambers of Commerce, said:

“People are at the heart of every thriving business, and employers want to ensure their workforce is happy, engaged and well paid.

“However, every above-inflation wage increase leads to higher business costs, lower investment and fewer opportunities for individuals.  Making employment more expensive risks deepening the jobs crisis among young people.

“Our research shows that labour costs remain the biggest cost pressure for SMEs, cited by 72% of businesses in Q3. There’s a limit to how much additional cost employers can bear without something having to give.

“With unemployment rising, the government needs to use tomorrow’s Budget to ease cost pressures for business. Crucially, there must be no new tax increases for businesses.

“Instead, the Chancellor must invest in growing the economy, enable firms to create more opportunities, and tackle the ongoing skills crisis.”