SIR Tony Blair’s institute has warned a Government plan to raise the minimum wage for youngsters would choke off the economy.
Ministers want to remove age restrictions so that workers aged from 18 to 20 would earn the same as the over-21s.
But the Tony Blair Institute says any changes in policy should be “explicitly conditional on economic conditions”.
It predicted more rises could “choke off the churn that underpins economic dynamism”.
And it claimed higher employer taxes and prioritising Net Zero targets over bills hurts growth.
It comes amid warnings the Government’s policies are fuelling record youth unemployment.
The Institute gave its warning in the run-up to Chancellor Rachel Reeves’ Spring Statement on Tuesday.
It came after we revealed she will cut next year’s planned minimum wage rise for youngsters.
A Government spokesman said: “We are delivering a stronger, more secure economy: easing the cost of living, bringing down national debt and unlocking growth and investment right across the country.
“Through backing AI, speeding up planning decisions, investing in innovation and skills, and attracting top global talent, we will continue to ensure the UK can lead in the industries of the future.”
