Business leaders have sent a warning to Rachel Reeves over an inflation-busting hike to the minimum wage which they fear will drive unemployment and hit economic growth.
The chancellor has unveiled an 8.5 per cent rise in the hourly minimum wage for 18- to 20-year-olds – to £10.85 – as well as a 4.1 per cent rise for the living wage, for those aged 21 and over, to £12.71 per hour. Meanwhile, 16- and 17-year-olds, as well as those on apprenticeships, will see an increase of 6 per cent to £8 per hour.
