The national minimum wage should be kept at its current level during the coming year in order to help businesses survive the economic downturn, the British Chambers of Commerce (BCC) has argued.

The BCC wants the Low Pay Commission to recommend that the minimum wage should be frozen for next year and until economic conditions have significantly improved.

The BCC has calculated that a further increase in the minimum wage by the amount seen in 2008 would cost businesses Ł300 million.

Any rise above zero per cent, the BCC said, would risk adding to unemployment.

David Frost, the BCC’s director general, commented: “We’re not opposed to the minimum wage going up when employment is high and the economy is doing well, but when jobs are being lost daily and a recession is in full swing, it makes no sense to increase the NMW.

“Most businesses are prioritising survival at the moment. A rise in minimum wage would not help firms hold onto staff and would simply add to unemployment.”

News update from London accountants Carter Backer Winter (CBW)