IT is time Britain's workers had a pay rise, David Cameron will tell the nation's business leaders - as companies continue to benefit from the plunge in the oil price and build up profits.

Speaking at the British Chambers of Commerce conference in London today, the Prime Minister will insist that economic success should not be just shown in dry growth figures or on company balance sheets but also in people's pockets.

He will tell captains of industry: "Now that our long-term economic plan is truly working, together we've got to make sure it works for everyone in our country. Economic success can't just be shown in the GDP figures or on the balance sheets of British businesses but in people's pay packets and bank accounts and lifestyles.

"The most recent figures show that wages are already growing faster than inflation and as the economy continues to grow it's important this continues and that everyone benefits. Put simply; it's time Britain had a pay rise."

As Labour continue to insist that, despite some positive economic numbers, many people are still finding it hard to make ends meet under the Tory-led Coalition, Mr Cameron will argue that for Conservatives business is "not a conspiracy of runaway profits, depressed wages, inequality and unfairness" but the best generator of growth, wealth, work and opportunity that there is and "there would be no better way to demonstrate that right now than to give Britain a pay rise".

As inflation figures out this week could see the cost of living fall to near zero, the PM will say that the economic recovery has been marked by astounding job creation with 1000 more people in work, on average, every single day since the 2010 election.

He will point out that to ensure more workers feel the effects of the upturn, the UK Government has already delivered the first real-terms increase in the minimum wage since the crisis hit seven years ago and will stress the aim is to achieve more than £8 an hour by 2020.

"As for business; the conditions have not been this good for a long time. We've got the strongest growth for seven years. We are seeing falling oil prices, meaning businesses up and down the country have lower prices on their inputs. Inflation is at half a per cent."

Mr Cameron will add: "Now that your costs are falling and it's cheaper to do business, I'm confident that more businesses will pass on that good economic news to their workers in rising pay cheques and higher earnings.

"That's good for your employees, it's good for you to have happier and more productive staff and, frankly, it's good for anyone who wants to make the argument for business."

Meantime, the National Institute for Economic and Social Research has revised upwards it economic forecast for the UK, saying the economy will grow by 2.9 per cent in 2015 and 2.3 per cent in 2016.

This, it explains, is almost entirely due to the sharp fall in the oil price.

TUC General Secretary Frances O'Grady said: "Since David Cameron became Prime Minister, the average wage is worth £2,500 less a year, the worst fall in living standards since Queen Victoria was on the throne."