UK business group urges smaller state pension increases ahead of budget

LONDON, Sept 7 (Reuters) - The British Chambers of Commerce has urged finance minister John Healey to replace Britain's pension so-called "triple lock" with inflation-linked increases ahead of his first budget, saying the savings could help boost youth employment and growth.

• The triple lock guarantees that the state pension rises each year by whichever is highest among inflation, wage growth or 2.5%.

• The British Chambers of Commerce said in a submission to the government published on Sunday that replacing it with annual increases linked to consumer price inflation could free up about £3.3 billion ($4.5 billion) over two years.

• The business lobby group said the savings should be used to cover some of the cost of extending a zero rate of employer National Insurance contributions to workers aged 21 to 24.

• The BCC also called for lower business energy costs, business rates relief and additional export support, saying weak confidence and rising costs were holding back investment.

• The group's recommendations come ahead of Healey's first budget next month, and his first major speech as finance minister on Monday.

($1 = 0.7393 pounds)

(Reporting by Sam Tabahriti)