UK chancellor calls for restraint over pay

Britain's chancellor Alistair Darling has called for UK companies to show restraint when setting increases in pay.

According to reports by the BBC, the chancellor has stressed the need for pay increases to operate with "consistency", in relation to the country's inflation target.

Britain's inflation target is current set at two per cent.

"We've got to make sure that we keep inflation under control because if we don't what will happen is that people may get a pay increase but every penny of it will be eaten up by rising prices in the shops," said Mr Darling.

The chancellor's comments were made during the Andrew Marr show, broadcast on BBC One.

Although levels may change when fresh data is released on July 15th, inflation is currently at a rate of 3.3 per cent, with interest rates set at five per cent.