Kate Nicholls, chief executive of trade group UK Hospitality, said businesses would be approaching the Budget with “even more trepidation” following the announcement of minimum wage increases.
“Trying to balance the books from the pockets of high street businesses will simply leave hospitality as collateral damage – threatening jobs, future investment, price increases for consumers, and business viability,” she said.
Nick Mackenzie, the boss of pub chain Greene King, told the BBC’s Today programme the rise in the minimum was was “slightly higher than we were envisaging”.
But he stressed it was the “cumulative effect” of costs rising for businesses that was “critical” to the industry.
Asked if rising costs to pay for higher wages and taxes would lead to job cuts and less investment, Mr Mackenzie said: “If you keep pushing costs into business then that is going to happen.”
But Paul Nowak, general secretary of the Trades Union Congress, said: “Every time the minimum wage goes up there are some voices who predict this will drive up unemployment. Every time they are wrong.”
Claire Reindorp, chief executive of Young Women’s Trust, also supported the rise, stating that women were “more likely to be in low-paid work, so for too long they’ve been at the sharp end of the financial crisis in this country”.