The British Cambers of Commerce (BCC) claims UK businesses will be unable to afford any increase in the National Minimum Wage this year and is urging the Low Pay Commission to recommend it be kept at the current level.

The BCC estimates an increase in the National Minimum Wage on the same level as 2008 would cost UK businesses £300 million, which could in turn lead to further unemployment.

David Frost, director general of the BCC, said: "We are not opposed to the minimum wage going up when employment is high and the economy is doing well, but when jobs are being lost daily and recession is in full swing, it makes no sense to increase the National Minimum Wage.

"Most businesses are prioritising survival at the moment. A rise in the minimum wage would not help firms hold onto staff and would simply add to unemployment."

The National Minimum Wage currently stands at £5.73 for employees aged 22 or over.