![BANKING GIANT'S DIRE WARNING ON LABOUR PLEDGES](https://cdn.magzter.com/1583504377/1718671531/articles/f-58cdITz1718683951386/BANKING-GIANTS-DIRE-WARNING-ON-LABOUR-PLEDGES.jpg)
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.
Bu hikaye Daily Express dergisinin June 18, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Daily Express dergisinin June 18, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
![DROSS TO BOSS AS LIONS ESCAPE](https://reseuro.magzter.com/100x125/articles/21044/1750655/63kXZAAc61719809903640/DROSS-TO-BOSS-AS-LIONS-ESCAPE.jpg)
DROSS TO BOSS AS LIONS ESCAPE
Southgate had looked lost on touchline until amazing twist
![Year of hurt never stopped me dreaming](https://reseuro.magzter.com/100x125/articles/21044/1750655/-tX2fWtkK1719809630666/YEAR-OF-HURT-NEVER-STOPPED-ME-DREAMING.jpg)
Year of hurt never stopped me dreaming
RELAXED RADUCANU READY TO BE PART OF GLORIOUS SUMMER
![It's a Shangri-La moment for our leaders of the pack](https://reseuro.magzter.com/100x125/articles/21044/1750655/8tVMbKC9T1719809778009/ITS-A-SHANGRILA-MOMENT-FOR-OUR-LEADERS-OF-THE-PACK.jpg)
It's a Shangri-La moment for our leaders of the pack
GARETH SOUTHGATE and England love a leadership group but for more than an hour and a half of an utterly dreadful performance it went missing.
![DUEL'S GOLD](https://reseuro.magzter.com/100x125/articles/21044/1750655/nySjO4QAm1719809477245/DUELS-GOLD.jpg)
DUEL'S GOLD
Verstappen and Norris gift laughing Russell a rare win
![IT'S OUR MOMENT OF TRUTH](https://reseuro.magzter.com/100x125/articles/21044/1750655/5UN2txP3T1719809351967/ITS-OUR-MOMENT-OF-TRUTH.jpg)
IT'S OUR MOMENT OF TRUTH
KEVIN SINFIELD has warned England their tour starts now as Steve Borthwick's side prepare to face New Zealand on Saturday in Dunedin.
![LOS FIRMLY IN PROFIT](https://reseuro.magzter.com/100x125/articles/21044/1750655/GC1N2gst91719809204416/LOS-FIRMLY-IN-PROFIT.jpg)
LOS FIRMLY IN PROFIT
Angeles wins Irish Derby
![Tories and Labour working to get small business votes](https://reseuro.magzter.com/100x125/articles/21044/1750655/pBWoAorbn1719808618634/TORIES-AND-LABOUR-WORKING-TO-GET-SMALL-BUSINESS-VOTES.jpg)
Tories and Labour working to get small business votes
FOUR in five bosses of small and medium-size businesses are still holding out to be wooed Thursday's General Election.
!['Jane saved my life...it's as simple as that'](https://reseuro.magzter.com/100x125/articles/21044/1750655/rjOEgKkpF1719808485306/JANE-SAVED-MY-LIFEITS-AS-SIMPLE-AS-THAT.jpg)
'Jane saved my life...it's as simple as that'
Dog charity worker nominated for her PTSD crusade
![Children killed by missiles](https://reseuro.magzter.com/100x125/articles/21044/1750655/1orpHyTFm1719808414210/CHILDREN-KILLED-BY-MISSILES.jpg)
Children killed by missiles
THREE children were among seven civilians killed by a Russian missile attack on a town in southern Ukraine.
![Pub's not the best place if you have a hangarover](https://reseuro.magzter.com/100x125/articles/21044/1750655/nt081WjuO1719808335301/PUBS-NOT-THE-BEST-PLACE-IF-YOU-HAVE-A-HANGAROVER.jpg)
Pub's not the best place if you have a hangarover
IT may not be the best choice for a quiet pint - this pub garden is just 50ft from an airport runway.