LABOUR is calling for a rise in the National Minimum Wage to £8 to combat "the fall in living standards" it claims has occurred in the last four years.
The party's leader, Ed Miliband, will deliver the proposal in his speech at the Labour Party conference on Sunday in Manchester, promising to increase the minimum wage by around £1.50 by 2020.
"It is about values," Miliband told The Guardian. "It is about saying that this country does not work for millions of working people and we are going to change it. It is not business as usual. It is a proper plan for your future."
The announcement of a rise has received some backing from the British Chamber of Commerce, but its director general, John Longworth, said the approach must be "evidence based."
"There is no doubt that the widening pay gap and a lack of social mobility is detrimental to the UK economy," he said. "As the economy continues to improve, businesses agree that the minimum wage must rise.
"However, businesses are in favour of an evidence based approach to the minimum wage rather than political parties using it to gain support from voters. The government should not intervene in such matters, unless there is market failure.
"Politicians should instead focus on implementing policies to raise productivity and improve skills in the workplace – which are the keys to higher wages for all in the future."
