Convenience retailers have met with the Low Pay Commission in order to discuss future minimum wage rates and the impact these could have on small businesses.
The Association of Convenience Stores delegation suggested that convenience stores have already dealt with increased charges such as utility bills and therefore “now is not the time for further increases”.
Its fears came after local shops showed their disappointment that the government did not do more to help them in terms of tax cuts.
Chief executive James Lowman said: “Businesses are dealing with these extra costs through cutting back on staffing overtime, reducing pay increases and working extra hours themselves.
“Many businesses that in the past prided themselves on paying above the minimum wage are now unable to.”
Any new significant rises in the National Minimum Wage would mean it would be harder for retailers to invest in their businesses, Lowman added.
Following the government’s pre-Budget report last week, in which Alistair Darling said VAT will be slashed by 2.5%, smaller retailers voiced their concerns.
The Forum of Private Business said these firms will be hit by unnecessary bureaucracy at a time when they are already stretched financially.
