Chancellor Philip Hammond has confirmed that the Government will launch a review into the future of the National Living Wage and National Minimum Wage after 2020.

In his Spring Statement on Wednesday March 13, he said the review of the international evidence relating to the employment and productivity effects of rising wage rates will be conducted by Professor Arin Dube and will consider the views of employers, trade unions, the Low Pay Commission and other stakeholders.

The review will report to HM Treasury and the Department for Business, Energy and Industrial Strategy.

ACS chief executive James Lowman said: “We welcome this new review into the impact of wage rates on the economy and productivity and will provide evidence on behalf of the convenience sector.

“Wage rates are a significant cost for retailers, and since the introduction of the National Living Wage in 2015, many businesses have had to cut back on staff hours, investment plans and even overall staff numbers to be able to afford the annual increases, so we’re keen to ensure that any future change is introduced with consideration of the impact on business.”

The Low Pay Commission’s current remit is for the National Living Wage to reach 60% of median earnings by 2020, estimated at £8.62 per hour.

The National Living Wage is set to rise to £8.21 per hour on April 1 this year, alongside a rise in the National Minimum Wage to £7.70 per hour.