Retail companies are struggling to meet the demands of the minimum wage, the CBI has warned.

In a submission to the Low Pay Commission ahead of next month's increase from £5.05 to £5.35 an hour, the CBI warned that rising energy costs and increased employment regulations meant that companies were having to reduce staff hours and plan job losses.

It added that the minimum wage has increased by 27% since 2002 and called for a 'modest' rise in the statutory rate next year.