The BRC was giving evidence to the Low Pay Commission this week which in February next year will recommend to government a new rate for the national minimum wage to come into force in October 2003.

The BRC has carried out its own research and found that the cost of a national minimum wage of £4.50 would be equivalent to at least 10 per cent of the wage bill. For £4.75 this would rise to more than 15 per cent. The consortium warns that this would seriously hamper creation of new jobs in retail.

'An excessive increase could end the retail sector's exceptional contribution to job creation,' said BRC director general Bill Moyes. 'Government cannot keep heaping costs onto retailers and expect them to absorb them without affecting jobs and potentially prices. The forthcoming increase in the national insurance contribution is likely to cost 10,000 jobs in retail. An excessive increase in the national minimum wage will compound this.'

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