In the Autumn Statement it was announced that the government will invite the independent Low Pay Commission (LPC) in its next report to consider and implement the best way to give business clarity on future levels of the National Minimum Wage, including consideration of two-year recommendations.

It said: “This would provide greater certainty for small and large retailers, and other businesses, when planning employment and investment decisions. Greater certainty of future national minimum wage levels would reduce risks for employers, enabling them to take on staff with greater confidence.

“Large retailers need to formulate and finalise their business plans well before the start of the financial year and certainty on costs is a vital element in creating investment.”

Read more new from the Autumn Statement 2011