Brexit – BCC says minimum wage plan needs rethink
Update from Norton Folgate
The British Chamber of Commerce (BCC) says the government must overhaul its minimum wage policy following the Brexit vote.
The business group said the “politically driven” approach to setting the national living wage – due to increase to around £9 by 2020 – could become unaffordable as the decision to leave the EU ushers in a period of uncertainty. It warns that pressing ahead with increases towards the £9 target would hit smaller businesses hardest.
These account for 99.3% of all private sector businesses and employ more than 15m people, according to the Federation of Small Businesses.
George Osborne claimed that raising the minimum wage would help to transform the UK into a “higher wage, lower tax, lower welfare” economy.
However, the BCC says the policies introduced by the Government to cushion the burden of higher costs, including cuts to corporation tax and extending employment allowances, do not fully offset the burden.
