Reeves ‘to raise national living wage’ in extra burden for firms

Rachel Reeves is reportedly set to raise the national living wage.

Rachel Reeves is set to confirm a rise in the National Living Wage by four per cent at the Budget, according to reports, in an electorally popular decision that could have severe implications for businesses and the wider UK economy.

Businesses have repeatedly warned that the double cost of last year’s tax raid on employers’ national insurance contributions (NICs) and a rise in the minimum wage has squeezed profits at firms and piled costs on the private sector.

A new plan to raise the living wage and its extension to people aged between 18 and 21, as reported in The Times , could further damage employers’ recruitment and investment plans, businesses and economists have warned.

The Budget plan would see employers hav