Goods and services made in the UK will increase because we're paying more to the people who create and deliver them. And if more people want to buy something - like a TV say - then simple supply and demand dictates that the price will increase there too. There aren't many cases where increasing both the cost of producing something and increasing demand for it won't result in a price increase to consumers.
And don't forget, we already operate at a
trade deficit in this country, ie we import more than we export, which broadly speaking is a bad thing. If we shunt the pay scale of everyone up the ladder too many steps, that deficit increases further. Suddenly goods abroad will seem cheap as chips to us and we'll buy from abroad instead of the UK, but people in other countries looking at items produced here will see them increase in price, and they'll buy less. The net outflow of money from the country increases, trade in the UK falls and jobs are lost. So there are other issues like that to think about.
Again, this isn't to say we shouldn't increase the minimum wage, we certainly should do. You can increase it by a certain amount without too many problems. But it needs to be at a level where were don't end up with adverse consequences, particularly since they can be self-defeating.
