How will your SME live with it?
In the summer of 2015, Mr. Osborne announced plans to increase the minimum National Living Wage for employees over 25 years of age, from its current £6.50 per hour to a pretty decent £9 per hour by 2020.
But just what will this mean for small businesses, particularly those that employ fewer than 10 people?
For starters it will mean a 1.5% increase on their annual salary bill with small businesses being hit harder than their larger counterparts. Experts also predict that the sectors set to suffer most are retailers, the hospitality industry and support services.
Perhaps it’s no surprise then that High Street favourites such as Next and Costa Coffee have suggested raising prices to combat the cost of the rise in wages. “It’s got to be covered somewhere”, they insist.
However, it’s not always a good PR idea to kick things back to the customer - to effectively tell them that they’ll be picking up the tab.
Time to Work Smarter
Perhaps small businesses need to look at ways to work smarter, rather than working harder, or working for longer.
Give us a call at Business First Network and let one of our advisors give your business a complete health check – a good old MOT, to see if there are ways you could be working more efficiently and therefore more cost-effectively.
So that when the rise in the National Living Wage does come into play, you won’t be the one to pay.