In response to George Osborne’s budget the UK website Annecto looked at how the National Living Wage will affect SMEs. Here’s what our co-founder James said on the new policy.
“I think that many business owners who were geared up to help drive Britain’s productivity and get people working, will have lost interest because they will see little incentive to do so from yesterday’s budget. The drop in Corporation Tax and an increase in Employment Allowance go some way but they are counter-balanced by the Living Wage.
It’s highly likely that SME growth plans will be arrested as they try to adjust finances to absorb a hike to £9/hour, especially as many will also be facing new pension costs too. It’s the kind of measure that will see more small business owners take a cut in their personal pay to levels well below today’s minimum wage to survive and could stunt high street regeneration.”
Read the full article for all the opinions of SMEs leaders on Annecto here.