Cumbrian businesses face 'tipping point' over minimum wage rise
The changes to the national minimum wage will also see workers aged 18-20 receive an 85p rise to £10.85, and under-18s and apprentices will get 45p more to £8 an hour.Minimum wage was increased by 6.7% for over-21s and 16.3% for 18 to 20-year-olds respectively last year, when there was also a rise in employers' National Insurance contributions.The Low Pay Commission, the government agency which recommended the increases, said previous rises for over-21s had "not had a significant negative impact on jobs".Chancellor Rachel Reeves told the BBC that because the cost of living is people's number one concern, a wage rise for the lowest paid workers was "appropriate".UKHospitality's Kate Nicholls said: "It's been a relentless and unremitting series of increasing tax pressures, cost increases and regulatory burdens hitting our sector. "Our survey data is showing that many businesses will not be able to withstand any more pressures. The tax burden - the highest in the economy - is suffocating the sector."The critical word is balance. It's not the wage in and of itself, it's the cumulative tax and cost burden that is putting many of these businesses at risk."Business Secretary Peter Kyle defended the decision to raise minimum wage, despite it being "difficult times" for businesses. "I am not going to progress our country and have it moving forward on the back of screwing down on low-paid workers," he said."I'm going to take them with us and invest in them and make sure they can enjoy and look forward to a life that gets better year after year."
