CBI says politicians should not set minimum wage

The UK's leading business lobby group has criticised Labour leader Ed Miliband's call for the minimum wage to be linked to the national average, saying politicians should not set wages.

Katja Hall, chief policy director of the CBI, told BBC Radio 4's Today programme:

I think we need to recognise that the system we have at the moment has been really successful and that system involves the setting of the minimum wage by an independent Low Pay Commission.

They have done a really good job and we think it's much better the job is left to them rather than given to politicians.

Ms Hall said the best way to boost earnings is by raising the country's productivity.

She called on the Government to improve school and vocational education and urged businesses to offer more apprenticeships.

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