Retailers have expressed “disappointment” at the news the Low Pay Commission has recommended a 3% increase in the national minimum wage.

Speaking in a committee session today, business secretary Vince Cable told MPs that the Low Pay Commission had recommended the government adopt a 3% increase in the minimum wage, which would take the adult hourly rate to £6.50 (currently £6.31). The government typically acts on the recommendations of the independent Low Pay Commission.

But the Association of Convenience Stores, which has called for the national minimum wage to be frozen, says shop owners are concerned that any increase could harm businesses by putting pressure on investment and impacting jobs.

“We are disappointed that the Commission has recommended an increase in the national minimum wage above inflation, above average earnings growth, and above public sector pay award levels,” said ACS CEO James Lowman.

“Our research has clearly shown that retailers have little choice but to reduce staff hours and delay further business investment when the minimum wage is increased.”

The ACS says its minimum wage survey shows that 87% of retailers have reduced staff hours within their business as a result of increases in employment costs, while 75% have delayed expansion and investment plans