Iceland boss says rapid minimum wage changes would ‘bankrupt’ business

The boss of Iceland says a sudden further minimum wage increase could bankrupt the budget supermarket chain.

Richard Walker told The Telegraph that it was right for employees to be paid as much as possible – but any changes should be “bled in slowly”.

The minimum wage increased in April to £11.44 for workers aged 21 and over. The rate for 18-20-year-olds now sits at £8.60.

The Labour government has not confirmed any future changes, but deputy prime minister Angela Rayner has championed a proposed overhaul of workers’ rights – including increasing the minimum wage, ending zero-hours contracts and ending “fire and rehire” practices.

Mr Walker, a former Tory donor who switched support to Labour in January, said he supported the overhaul but warned there could be a “disastrous” impact if wage changes are not brought in gradually.

“If Labour puts up the minimum wage and brings in day one rights, that’s fine, but it needs to be bled in slowly. If they turn around and say ‘the minimum wage is £15 now’, that would bankrupt us,” he said.

“A huge leap in the national minimum wage would be disastrous. Of course, people should be paid as much as we possibly can. So let’s keep the ambition and keep pushing, but not have such a shock to business.”