Local shops have expressed their disappointment as the Government confirms the 3% increase in the adult National Minimum Wage to £6.50 recommended by the Low Pay Commission. ACS’ (the Association of Convenience Stores) evidence has shown that an above inflation increase of 3% is likely to have a negative impact on staffing and investment levels in the convenience sector.
In a speech this morning, Business Secretary Vince Cable confirmed that the Government had accepted all of the Low Pay Commission's recommendations.
ACS Chief Executive James Lowman said: “We are disappointed with the increase in the National Minimum Wage above inflation, above average earnings growth, and above public sector pay award levels. Our research has clearly shown that retailers have little choice but to reduce staff hours and delay further business investment when the minimum wage is increased.”
The 2013 ACS Minimum Wage Survey showed that 87% of retailers have reduced staff hours within their business as a result of increases in employment costs, while 75% have delayed expansion and investment plans. Findings from the Voice of Local Shops survey of 1,100 retailers earlier this year revealed that the majority of independent retailers believe that they earn less than the national minimum wage when their working hours are taken into account.
Mr Lowman continued: “Despite our disappointment with the increase, we are pleased that the Government has not buckled under the political pressure and gone beyond the recommendations of the Low Pay Commission recommendations. We firmly believe that the Low Pay Commission is best placed to recommend the wage rates”.
