UK bosses cautious over pay rises in 2016

CBI survey shows employers plan to keep hiring staff but will limit pay rises because of the new national living wage and apprenticeship levy

British employers expect to keep hiring permanent staff in 2016 but are cautious about offering meaningful pay rises, according to a survey from employers' group CBI.

In its annual employment outlook, the lobby group said some companies are also contemplating price hikes or recruitment freezes to offset higher labour costs from both the introduction of the "national living wage" in April and a new apprenticeship levy.

Related: National living wage is a gamble, says CBI boss