Minimum wage to be regionalised

Workers in London should be paid a minimum wage £1 an hour higher than their peers across the rest of the country, according to a think-tank with close links to the Government.

The highly influential Institute for Public Policy Research is calling for the minimum wage to be raised to £6.50 an hour in the capital - compared with the national hourly rate of £5.35.

Advisers close to Gordon Brown last night confirmed that the plan was now under serious consideration by the Government.

I have said before that each area should have its own minimum wage and I even stated the minimum wage formula which can be seen here. The formula could be increased for big businesses so that the small businesses could compete.