Hospitality workers fear the living wage hike will hit business costs.

Business chiefs have criticised Rachel Reeves’ decision to hike the national living wage by more than 4 per cent for most British workers at the Budget.

In a final announcement before unveiling the full set of fiscal measures, the Chancellor said she would back the Low Pay Commission’s recommendations to raise the minimum wage to £12.71 for all over 21-year-olds.

The living wage for those aged between 18 and 20 will increase by 8.5 per cent to £10.85 an hour as the government looks to “narrow the gap” in pay between younger and older workers.

Pay for 16 and 17-year-olds and those on apprenticeships will increase by 6 per cent to £8 an hour.

In a video statement published on the eve of the Budget, Chancellor Rache

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