On a visit to Kent, Business Secretary Sajid Javid said the Government will press on with introducing the national living wage, despite concerns from shop owners and major retailers.

Mr Javid sat down with about a dozen entrepreneurs at the Business Terrace in Maidstone today in a meeting arranged by the county’s branch of the Federation of Small Businesses.

He said he had backed the Prime Minister in campaigning to stay in the EU because it is “the right decision for the country” and pledged to “cut as much red tape as possible” for companies.

He also said solving Operation Stack remains high on the Government's agenda but stopped short of backing a lorry park as a solution. However, he said the impact on business of raising the minimum wage for over 25s to £7.20 from April had been offset by policies which cut costs.

It comes as the British Retail Consortium said nearly a million jobs could be lost over the next decade as the sector struggles with higher pay bills and taxes to fund apprenticeships.

"We want a well-balanced approach which sees business keep growing..." - Business Secretary Sajid Javid

Mr Javid said: “The living wage is the right policy for the country but I do accept that for certain sectors – retail is one of them – that it’s a challenge.

“That’s why it’s important that Government policy is well balanced so firms can see they are getting help with taxes. Our corporation tax rate is the lowest in the G7 and there is the employer’s national insurance allowance.

“We want a well-balanced approach which sees business keep growing. In Kent there are more 250,000 more jobs than there were in this region five years ago and 140,000 more businesses than previously.

“I want that kind of growth to continue and that’s by making sure the Government gets the right balance of policies.”

On solving Operation Stack, which blighted Kent’s roads for 32 days last summer, Mr Javid said: “It is being taken very seriously and I remember the problems it caused last year.

“It had a knock on impact on jobs and growth and it’s important to take account of that and do what you can.

"It is high on the Government’s agenda and it will remain so. What’s important is it’s not just seen as a seasonal thing and an issue when it’s on the news. We have got to keep working on this issue when the problems aren’t happening.

“We will work with local leaders and local businesses. I’ve had a discussion with the local FSB to hear about their issues and it’s important that we hear these voices.”

He added: “I’m not an expert on this and I would rather be driven by the evidence. It’s important to look at all the evidence.”