Cameron tells business: “Britain needs a pay rise”

The Prime Minister will tell industry chiefs that low inflation and a growing economy mean workers should start to see a bigger increase in their wages.

Speaking at a British Chambers of Commerce event, Mr Cameron is expected to say: “The most recent figures show that wages are already growing faster than inflation and as the economy continues to grow it’s important this continues and that everyone benefits.

Put simply, it’s time Britain had a pay rise.”

He will add: “For us business is not a conspiracy of runaway profits, depressed wages, inequality and unfairness it is the best generator of growth, wealth, work and opportunity there is and there would be no better way to demonstrate that right now than to give Britain a pay rise.”

At the same event Labour’s Shadow Chancellor Ed Balls will say that the EU must be reformed.

Mr Balls will tells employers: “Britain has always succeeded and can only succeed in the future as an open trading nation, backing wealth creation and winning investment and attracting companies and talent from around the world. To walk away from Europe, our biggest trading market, would be a disaster for Britain.”