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National Living Wage hitting SME profits

Below is an article that has been published by the FSB. Whilst you may think that the National Living Wage is a good thing and maybe companies and organisations that were below this should be forced to increase the wages of their employees. As always there is Karma. Some companies having to put up prices to cope with the increased costs or reducing their staff numbers to keep their costs down. Whilst I do not believe that the numbers affected will do anything to upset the UK economy. Maybe the employees that are losing their jobs will be able to find alternative employment. The number of overseas workers has reduced amid fears of Brexit and the fact that thety are unsure of what their employment status will be.

“Almost two thirds of small British businesses have taken a hit to cover the cost of the National Living Wage, according to a survey by the Federation of Small Businesses (FSB), which found that 64% of small firms are affected. The survey found that 43% of small firms had to increase wages to meet the new requirements, with 39% having put up prices in order to cope. The FSB said 24% have scaled back or cancelled investment plans, while 22% have reduced staff hours.”

SME Magazine

 


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