A prominent Bradford businessman has lashed out at the national minimum wage (NMW) which he says is causing "major problems" for employers.

Steven Gash, managing partner of Cleckheaton-based chartered accountants Clough & Company, slammed the fact that it had risen by 71 per cent since it was introduced six years ago, an average annual increase of 12 per cent.

He said this was "well above inflation and surely unsustainable". In October the NMW is due to rise to £5.05 an hour from £4.85 for over-21-year-olds but Mr Gash said the unions were pressing for £6. "While the Low Pay Commission argues that more jobs have been created since the minimum wage was introduced, unsurprisingly, representatives from the business world have long campaigned for a freeze on increases," said Mr Gash.

"The CBI claims the NMW will damage the UK's ability to compete in an international market.

"But while the NMW opens up greater parity for those at the lower end of the pay-scale it can also be incredibly limiting for businesses wishing to reward other equally devoted employees.

"Even the very biggest, most successful employers are likely to struggle to reward all staff with a yearly pay rise of 12 per cent and to continue to match this on an annual basis. The NMW may be rising, but profit margins are not necessarily keeping pace."

But the regional TUC said even though business organisations had steadfastly complained that the NMW would "tip businesses over the edge", since its introduction the workforce had increased by 1.4 million.

"When employers say that the minimum wage is becoming uncomfortable, it is actually a sign that it is becoming more effective," said regional council member Christine Beastall. "The key tests are the level of jobs in the whole economy and the levels of jobs in low paying sectors, and both these indicators are actually doing pretty well."