Skip navigation

Gloucestershire Business News

Businesses to struggle over living wage rise

Businesses are facing a 'cashflow squeeze' and will struggle to absorb a higher national living wage as proposed for the budget.

Those staff on the minimum wage are set to get a pay rise from April, with the rate for those over 23 going up from £8.91 to £9.50.

The 6.6% increase is more than twice the 3.1% cost of living increase.

For those aged 21-22 the National Living Wage will rise from £8.36 to £9.18 an hour and the Apprentice Rate goes up from £4.30 to £4.81 an hour.

Jane Gratton, Head of People Policy at the British Chambers of Commerce, said: "With rising energy costs, higher raw material prices, high levels of debt as a result of the pandemic and tax increases due, many firms are facing a cashflow squeeze.

"So, while businesses support the minimum wage, the size of this increase - with less than six months' notice - will cause significant concern, especially with so many smaller firms already struggling.

She added: "There is a limit to how much more firms can continue to absorb rising costs before they have to raise their own prices adding to inflationary pressures. It is therefore vital that companies are not faced with any further up-front costs for the remainder of this Parliament.

"The best way to sustainably increase wages is to help firms boost their skills and productivity.

"If businesses are to lead our economic recovery, they desperately need room to breathe, rebuild their finances and have the confidence and capacity to invest, including in the training and development of their people."

Related Articles

VIDEO: Julian Dunkerton launches his new boutique Superdry store in Cheltenham Image

VIDEO: Julian Dunkerton launches his new boutique Superdry store in Cheltenham

Superdry opens its flagship concept store in Cheltenham today.

VIDEO: Pied Piper Appeal launches 30 Years celebration Image

VIDEO: Pied Piper Appeal launches 30 Years celebration

Gloucestershire children’s charity, the Pied Piper Appeal, has launched its 30 Years campaign for 2022, thanks to support from over 30 local firms.

High point for £11.8m student residence for Gloucester Image

High point for £11.8m student residence for Gloucester

An £11.8 million scheme which will provide much-needed additional student bed spaces in the heart of Gloucester city centre has celebrated a major development milestone.

£1 million site close to key Gloucestershire route under offer Image

£1 million site close to key Gloucestershire route under offer

A piece of land at the western end of the A40 dual carriageway up for sale for £1 million is under offer.

Copyright 2021 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.