New living wage will be a ‘massive burden’ for small businesses

This makes a bit of sense, as it’s being said the Chancellor wants bosses to increase wages for employees (with one way being cutting National Insurance contributions they have to pay), but without a proper raise in Living Wage, we’re not sure how that will be implemented.

“Our research has revealed that two thirds of our members already pay the living wage or above, but there is real concern over the extent to which additional red tape and regulation will cut cut into a business’s growth and time”, he said.

The new rate will replace the national minimum wage, which stands at £6.50 per hour for over 21-year-olds.

THE introduction of a compulsory “living wage” will have a “devastating impact” on independent retailers in Northern Ireland, it was claimed yesterday.

Mr Black said it could mean higher prices for consumers as retailers look to pass on the costs, while also making it more attractive to employ under 25s who not entitled to the living wage.

Mr Osborne used yesterday’s Budget to announce that from April employers will have to pay everyone over 25 at least £7.20 an hour – rising to £9 by 2020.

“It leaves working people worse off and fails the test of building a more productive economy”.

Rhys Moore, the foundation’s director, said he was delighted low earners would receive a pay rise.

“We welcome the fact that the task of outlining a route map to bringing the National Living Wage to 60 per cent of median income has been given to the Low Pay Commission (LPC). It is crucial that Friday’s productivity plan addresses the issues faced by retail businesses and creates a sustainable route to higher incomes”.

Millions of pounds has been wiped off the value of Britain’s listed retailers as investors fear that they will be burdened with soaring wage bills following the announcement of the new national living wage.

“The country can afford [higher wages], British business can afford that”, he said.

However Samantha Hurley, Head of External Relations and Compliance at The Association of Professional Staffing Companies says: “The Government proposes removing tax relief on home to work travel and subsistence for those workers who are engaged through an employment intermediary, and who are subject to supervision direction and control”.

The amount people have to earn before paying tax at the 40% rate will increase from £42,385 to £43,000 in 2016/17. There was no update on the Government’s review of business rates, which so many smaller enterprises are struggling to pay.

Under current proposals, the decision to change Sunday trading rules will be devolved to the local level. “Effective consultation with business and the community, clarity and certainty are essential”.

Regardless, the Secretary of State for Work and Pensions, Iain Duncan Smith, was pleased with the news.