Many Bradford employers are planning to give their staff a pay rise this year, in spite of continuing tough trading conditions.

Most of the increases are likely to be between one and two per cent, says Bradford Chamber of Commerce, which represents around 1,100 businesses.

A poll of Chamber members revealed that 55 per cent were planning some form of pay award for staff this year, while 29 per cent were not planning any rises.

Only three firms said they had reduced pay or hours over the past 12 months.

The news comes as around half of firms said they were working at between 75 per cent and full capacity, and a third between 50 per cent and 75 per cent .

More than a third of firms said they would award pay increases of between one and two per cent.

The Chamber provided the pay information to the Bank of England as part of its economic forecasting process.

Mike Cartwright, the chamber’s policy executive, said: “Company bosses have the predicament of having to reduce overheads and tighten budgets, wherever possible, while delivering the best possible service. As staff wages form the bulk of costs, this is increasingly difficult.

“Bosses don’t want to lay off staff if they can help it as they know that, sooner or later, the economic upturn will mean that those staff, or people as good as them, are needed again. Reducing wages or deferring increases are two ways of getting round the problem.”