Clash over national minimum

The CBI employers organisation is urging a freeze on the national minimum wage until 2006, while the TUC is pushing for an increase in the adult rate to £5.35 next October, rising to £6 by October 2006.

The CBI says it would accept "a little over £5 an hour" - but not until 2006. The last increase to £4.85 (a rise of 7.8%) came into force just two months ago, but the Low Pay Commission has to advise the government on future increases by the end of February.

The CBI says there is "growing employer concern" about the issue. But the TUC says it is stuck in a minimum wage "Groundhog Day", for continuing to argue that an increase could cost jobs despite evidence to the contrary.