The latest increase in the minimum wage is in danger of causing a winter of discontent for the economy, the CBI has said.

John Cridland, deputy director-general of the employers' body, told MPs on the trade and industry select committee that although the private sector accepted the minimum wage it was concerned about its level.

Nick Goulding, FPB chief executive, said: "The latest increases have been badly thought through, so any further hikes would just exacerbate the situation.  It would hit businesses in poorer and remote areas harder and would take cash straight out of employers' pockets, since their profits are only going up with inflation.

"Above all, it would be an unwelcome additional pressure on businesses already being stung with a range of higher costs, including increased employers' National Insurance contributions and rocketing levels of insurance premiums.'