British business chiefs urge minimum wage freeze

The British Chambers of Commerce (BCC) said the private sector would lead the economy out of recession but could not do so without the freedom and flexibility.

Darling, the chancellor of the exchequer, presents his budget on Wednesday. "The chancellor's budget is an opportunity for the government to prove its commitment to British business during this recession," said David Frost, director general of the BCC, the national body for a powerful and influential network of accredited chambers of commerce. "It will be business that drives the economy forward, creating jobs and wealth. Their importance to the country cannot be ignored. Unless they are given the freedom and flexibility needed to survive and prosper, many more companies will go bust, and sadly, many more jobs will be lost."

The minimum wage stands at £5.73 ($8.46 dollars) an hour for adults, £4.77 for 18-21 year-olds and £3.53 for 16-17 year-olds.

The BCC suggested Darling should include moves to reduce the rate of small companies' corporation tax and introduce help to encourage short-time working rather than redundancy. The group also suggested the creation of enterprise zones to boost local economies.