BANKING giant HSBC has warned that Labour's plan to boost workers' wages risks triggering a surge in unemployment and driving up mortgage bills for millions.
And worryingly, its economists raised fears Sir Keir Starmer's flagship policy could also stoke inflation.
The Labour Party was left floundering yesterday when asked by the Daily Express for a response to their concerns at a press conference.
Shadow Paymaster General Jonathan Ashworth dodged answering before the footage was taken off social media.
Lingering
Elizabeth Martins and Emma Wilks of HSBC said in a note to clients: "A higher minimum wage could increase costs and reduce efficiency, adding to unit labour costs.
"This in turn could either push firms into reducing headcount and/or sustain lingering inflation pressures, keeping bank rate higher for longer."
HSBC's analysis comes days after the Labour leader pledged to bring in a "New Deal for Working People" within his first 100 days in power if elected on July 4.
This includes replacing the minimum wage with a so-called "genuine living wage" that reflects the cost of living. But economists at the bank believe raising the minimum wage beyond adjusting it with inflation would result in another larger jump in costs for firms next year.
It comes after it soared by a record amount in April - from £10.42 to £11.44 with the average wage bill growing by 20% for employers in the past two years.
Pushing up inflation again would undo the reduction under Rishi Sunak's watch where it has come down from 11.1% in late 2022 to just 2.3% now.
Diese Geschichte stammt aus der June 18, 2024-Ausgabe von Daily Express.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der June 18, 2024-Ausgabe von Daily Express.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
I know what makes the fans tick.. I'd be in there myself if I wasn't on the pitch
PICKFORD CALLING FOR PATIENCE AND PASSION
Horner ready for Max backlash
CHRISTIAN HORNER is bracing himself for more fireworks between Max Verstappen and Lando Norris at the British Grand Prix.
I PINCH MYSELF BEING HERE
Manny can't believe he could face Kiwis
Gem of a ride up for grabs
ROGER TEAL yesterday launched a search for a top jockey for leading Coral-Eclipse Stakes fancy Dancing Gemini after losing his first two choices.
Food prices ease but credit card borrowing leaps wildly
SHOP prices are rising at the slowest rate for more than two-and-a-half years, figures out today show.
Loose horses gallop through city...again
THREE military horses have been \"swiftly and safely\" recovered after bolting in central London.
Probe into Jude 'gesture'
SUPERSTAR Jude Bellingham was at the centre of disciplinary probe last night for a gesture he made after rescuing England's Euro 2024 glory bid.
Freed hostages tell of 'torture'
ISRAEL released 55 Palestinians detained in Gaza, including director of the territory's main hospital.
Macron's bid to block far-Right 'accessing highest office of state'
EMMANUEL Macron called a crisis meeting at the Elysee Palace in Paris yesterday following victory for the far-Right opposition in the first round of parliamentary elections.
Prison officer bailed over 'cell sex video' allegations
A PRISON officer allegedly filmed having sex with an inmate faced court yesterday on a charge of misconduct.