NMW to increase again next year to £12.21 ph.

If you have any idea about business this just means that all wages will go up, costs will go up and inflation will go up.
I employ 25 people so I know what I'm talking about

How can you not see that if minimum wage goes up, everyone not on minimum wage will want their wage to rise by the same amount?

If they've been employed more than 2 years then they'll be due some statutory redundancy which will hopefully bridge the gap for them and I sincerely hope they and your relative find other jobs quickly.

I'm sorry but I really do have to labour this point, if a business is not financially viable then it is failing. It may be lovely and those who use it may value it greatly but it is failing.

You said there is another pub, perhaps that one will be able to turn a profit once the demand falls more in line with the supply.

No. Businesses are all about the money. That’s how it works. What support a community might need is another issue entirely.

Fucking hell. Do people really think like this?

Yep, use it or lose it.

Or the government could support SMEs? They're often the drivers for innovation and growth, they often offer jobs in areas the big businesses don't bother going to, and often offer skills or services not found in abundance elsewhere. I think they should top up low earners wages in small companies, ones with a huge turnover should have to pay the wages themselves- like the supermarkets.

I am completely against the rise. This will lead to a huge increase in my weekly shop. The staff there are friendly but I am not concerned if they can pay their bills or not. Getting my shopping cheaper is far more of a concern.

Maybe the government could look at building large communal homes where all these workers can live? Food, water, heating and a small room all supplied in exchange for their wages. If they want anything more than that they should have worked harder.

Also if he had 30 years of good times, presumably he has saved and won't exactly be going hungry if he experiences a slight increase in costs? So you'll excuse me if I dont weep for him.

At the end of the day it's up to him, he can either try to mitigate his increased costs in some way or get by on lower profits (imagine the horror!) or change/improve the business in some way or ultimately wind up.

We could approach this in a different wage and not actually make it about wages, but properly fairly tasking people and business who can find all the legal loopholes to avoid taxation that small businesses can't.

That way you raise treasury income so the need to tax small business as heavily is reduced. It also means you can reduce taxation on citizens in other ways.

So the cost of living crisis eases and wages go further.

You could also do a lot to tackle the rental market which is fleecing a lot of the poorest in society (and most likely to be on MW).

Again you solve the issues in a different way without jeapordising crucial public and community services that many small businesses provide.

But nope this is actually all about the stranglehold these huge multinationals have and how they are able to direct the political narative so people just bleat on about wages as if this is the solution to the problem.

Its really not. Its going to produce a whole pile of its own economic and social issues.

That nursery you desparately need so you can go to your MW job is now the only one in town. So what are you going to do? You have to take a job or lose your benefits. But lack of places and rising costs means the nursery left in town can hike its prices up massively. Oh fuck you are priced out cos you can't compete with those on £60k.

Whoopie.

There are far too many people who have totally one dimenionsal thinking on this.

I think this will finish my pre-school which has been running for 30 years. The nmw increase, the rise in employer NI contributions, the fact we can't charge top-up fees and the funding that doesn't match what it actually costs to provide places. Successive governments have meddled with and distorted the sector so much that it is now un-workable.
We are a not for profit small, excellent setting but we can't run at a loss.

The problem as some have identified is it’s inflationary. Those on minimum wage get an increase, then the levels above expect an increase to differentiate between the levels for experience, qualifications, responsibilities etc.

Then add on the NI rise for employers.

Companies need to make a profit to survive. They’re not going to run a business at a loss. Therefore if margins are tight they increase the cost of their products that you the consumer buy.

This applies to the big boys as well. So if the supermarket needs to increase its staffing costs by £xxx, they look at two things. Reducing staffing levels and increasing the prices of their products they sell. So the cost of your shopping goes up and the amount of staff operated tills decreases with an increase in self service areas. It’s just standard economics.

If everyone had that mindset, there would be no businesses or jobs at all. Smh

No people aren’t that dumb, they’re angry that they’re working full time and can’t afford to pay their bills.
Have you worked in the private care sector? I have.Are you saying the government aren’t subsidising small businesses? They drive our economy! So why are more people relying on the government to top up their income, who incidentally are working full time.

Yeah true, let's just shut all leisure and hospitality businesses- that'll be nice.

better entertainment else where, booze cheaper at supermarkets etc all other various factors that add up as to why people dont use the pubs

@HairyPie that doesn't solve the problem of finding jobs for our existing jobseekers. The government needs to reduce unemployment and encourage people into these NMW jobs. The more people currently in this country we can move into employment the better all round. We shouldn't need to import care workers, we should be training and employing our own

No of course not but he should have realised that owning a business is insecure and can be temporary and at any time something unexpected could happen which would threaten it's viability. Adapt or die.

Tell that to the 6 members of staff that he's going to lay off, they won't be feeling calm or exploited. It's not a failing business either, it's a deprived town who value their town centre pub. There are more aspects to running a business supporting the community than pounds, shillings and pence.

You think 30 years ago when he started his company he should have predicted a £20k rise in shipping costs within one year? That's an unprecedented hike. By that logic no SMEs should open and operate in case stuff like this happens.

Well said! I don’t understand why people can’t see this.

A lot of trades employ people on minimum or living wage and will now have to increase their prices to cover the difference. People won’t be able to afford this increase so won’t get the extra work done, only essentials. Eventually those businesses will close leaving just the big companies who can then charge what they want. This also leaves lots of youngsters with no apprenticeships as not enough interest in taking them on…

He's an idiot if he knew all about the risks but for some reason never imagined they would apply to him.

"We seem to think that wages can only rise..."

Either you are bringing deliberately obtuse or suffering from money illusion.

Austerity meant many many people suffered real term pay cuts for years leading to significant erosion of purchasing power. We all remember the doctors pointing out how much their pay had been eroded and striking for the best part of 2 years.

That's before we get on to cuts in pension entitlement, accrual rates etc.