ACS (the Association of Convenience Stores) has highlighted concerns about the government’s intention to increase the national minimum wage in each of the next five years.
The prime minister announced the commitment in his speech to the Labour party conference .
The announcement appeared to contradict existing policy to allow the independent Low Pay Commission (LCP) to recommend the pay floor.
ACS chief executive James Lowman said: “The prime minister’s announcement to increase the national minimum wage will place further pressures on businesses emerging from the economic downturn.
“It also undermines the LCP’s role as an independent body solely tasked to make recommendations on future increases.
“We need the government to come clean about whether it is now over-riding the Commission and committing to set the minimum wage itself, or whether it wants to retain the LCP as an independent body.
“Local shops provide flexible local employment for hundreds of thousands of people. Retailers in our sector support the need for a minimum wage but have found the increases of recent years hard to afford.
“The impact has been reduced hours, fewer jobs and reduced investment in important community businesses. The last thing these business need is more political grandstanding causing further uncertainty and cost.”
