Increases in the minimum wage should be tied to movements in basic pay to prevent ministers from manipulating the low pay rate in order to resolve political difficulties, manufacturing employers said on Monday.

Business leaders have been alarmed by Alistair Darling’s suggestion that “changes to the minimum wage regime to support younger workers” could be used to compensate low-paid youngsters who will lose out as a result of government’s decision to scrap the 10p tax rate. In a bid to stave off a revolt by Labour MPs in Monday’s vote on the Finance bill, the chancellor has offered to compensate some of the 5.3m people expected to be left worse off by the controversial tax measure.