Gordon Brown has blocked plans to extend the minimum wage to 21-year olds.

The chancellor feared that the 90-pence per hour boost for around 30,000 young workers would alienate business and slow growth. Other ministers, including trade and industry secretary, Stephen Byers, had hoped the move would stave off growing union criticism over privatisation and attract young voters as Labour continue to fear a low turnout.

Press releases and an election press conference were planned a fortnight ago, only to be postponed and now dumped.