rise in the minimum wage to £5 an hour would hit businesses hard according to
the Association of Chartered Certified Accountants (ACCA).
survey of 500 ACCA members, representing 10,000 businesses, almost 80 per cent
of respondents thought an increase of the National Minimum Wage (NMW) would
have a serious effect on the economy and employment.
per cent of respondents said the existing minimum wage had already made a big
impact on employment practices. Employers were more likely to abolish paid
breaks, cut working hours and increase workloads to re-coup costs.
head of small business, David Harvey, said that if the NMW were raised to £5
per hour as proposed by the TUC, employment and profitability would be
commented: "This survey shows that there is a ceiling at which the NMW
will become counter productive. It also reveals that a significant number of
companies have already been adversely affected even at the lower rate and that
the proportion is increasing year on year.
higher NMW is not a one-way bet for lower paid workers particularly in regions
where the NMW is high in relation to costs and prices in the local economy. At
£5 the NMW would close businesses."