Minimum wage 'to rise 10%'

Opulent surroundings, but often hospitality staff are poorly paid

The national minimum wage in Britain, currently £3.70 an hour, is set to rise by about 10%, it is reported in the Financial Times newspaper.

The paper says that Stephen Byers, the trade and industry secretary, is expected to make the announcement as part of next week's budget.

Some affected sectors

Retailing

Leisure

Textiles

Hairdressing

Social care

Hospitality

Source: CBI

The Low Pay Commission, which advises the government on the national minimum wage, is currently weighing evidence from both industry and unions.

It was due to have delivered its recommendations in July, but the paper says this date has been brought forward.

CBI urges caution

The Confederation of British Industry accepts the minimum wage has worked well overall and it says the rate should be raised "as circumstances allow".

But it warns that "a figure in excess of £4 an hour could be extremely damaging to business with some pain below this".

It is also concerned that the rate is used "as a floor below which wages should not fall rather than as an escalator for forcing up pay levels".

Unions push for more

Trade Unions are calling for "well over £4 and in the range of £4.50 to £5.00," a spokeswoman for the TUC told BBC News Online.

But she would not say precisely how much unions thought the level would be once the Commission brings out its judgement.