Up-to-date coverage of the latest events in UK retail.
Business leaders lash out at minimum wage increase
Business leaders have lashed out at the proposal by the chancellor to increase the national living wage by more than £2 an hour over the next five years, saying it would put further pressure on retail and services.
Speaking at the Conservative Party Conference in Manchester, chancellor Sajid Javid said the government would target an increase in the national living wage to match two thirds of the working population’s median earnings over the next five years - meaning an increase from around £8.21 to £10.50.
The chancellor also said he would lower the applicable age threshold from the current 25, down to 21.
However, FSB chair Mike Cherry attacked the proposals, saying they would heap further pressure onto struggling high street businesses.
“This increase will leave many small employers struggling and, without help, could make some small firms unviable,” he said.
Shares in a number of large retailers, including Sainsbury’s and Tesco, fell by more than 3% yesterday on the news.