Business groups hit out at minimum wage rise

Kashflow logo
Share this content

Government measures to increase the minimum wage will be fiercely resisted, business groups have told AccountingWEB.

The Low Pay Commission is reported to want to increase the minimum wage (currently 4.85 per hour) to 5.05 in October, and 5.30 in 2006.

A spokesman for the Federation of Small Business (FSB) told AccountingWEB that the FSB believed the wage hike to be engineered to win votes, and that timing of the announcement, so close to the general election, was suspect.

David Bishop said, "We're concerned that the minimum wage has rised 35% over 5 years and believe that it should be adjusted in accordance with economic conditions. We suspect that government is trying to crank it up to 5 per hour by the election."

While stressing that the FSB supported a minimum wage in principle, the curren...

Please Login or Register to read the full article

The full article is available to registered members only. To read the rest of this article you’ll need to login or register. Registration is FREE and allows you to view all content, ask questions, comment and much more.


Please login or register to join the discussion.

By Anonymous
25th Feb 2005 13:45

Small business, small minds?
An increase of £8 per week in 2005 and £10 per week in 2006 for those on the lowest pay in the country. Can the FSB state precisely what they believe the minimum wage should be? Slashing bureaucracy and simplifying the tax code would bring more durable and tangible benefits to SMEs whose lobbyists should focus more on. Keeping workers on the lowest legal wage is a recipe for discontent, economic stagnation and employee turnover. PR statements complaining about the minimum wage may be perceived by employees as an attack on their standards of living. As an electoral ploy, it will probably not impress the lowest paid too much, as they have been priced out of the housing market completely, and also subject to stealth taxes and generally rising prices. What will work for New Labour is the perception that they are on the side of the low paid, something that becomes an issue only when employer groups attack the minimum wage and come across as miserly in media interviews.

Thanks (0)
25th Feb 2005 14:42

Well said Liam
I am astonished that anyone thinks it possible to build a successful business in the UK based on paying less than £5 an hour wages. Does anyone seriously expect someone to live on about £10,000 a year now?

Business should see its job as being to raise the stakes for all, not to crush some down. Clearly on this issue the FSB is seeking to pursue an old (and I would have hoped) long forgotten Marxist agenda.

Thanks (0)