The CBI has urged the Low Pay Commission against backing a major increase in the minimum wage during 2005.

Publishing its submission to the commission, the lobbying organisation warned recent rises were having a significant impact on businesses.

Director general Digby Jones said that no one "could possibly yet have a clue" about the impact of the last rise, and urged caution on future rises.

But the TUC said bosses were being "mean-spirited" towards poorly paid workers.