According to Jinshi Data, British economic experts warned that the UK's plan to significantly increase the minimum wage could make it more difficult for the Bank of England to cut interest rates and curb long-term growth. The new Labour government led by British Prime Minister Starmer has promised to introduce a "real living wage in line with the cost of living" and reduce the minimum working age from 21 to 18.

The Resolution Foundation, a think tank, estimates that Labour's plan would raise the minimum wage to 70%. Sanjay Raja, chief UK economist at Deutsche Bank, said the minimum wage would rise by 7% to 10% from April 2025. He added that this could have a significant impact on inflation and unemployment.

Vicky Pryce, chief economic adviser at the Centre for Economics and Business Research, said the pay plan would influence the Bank of England's immediate stance on interest rates as they expect inflation to move higher.