NMW to increase again next year to £12.21 ph.

Dh and I own a small business. The rise in NMW, plus increase in NI, plus the employment rights bill have already changed behaviour with all the other businesses we deal with. It basically means there will be less jobs. Possible higher inflation and interest rates too.

This government are anti business and we all know it. We cannot grow under these conditions, many won't survive at all. We are good employers who invest in the wonderful people we employ. I earn far less than our staff! BUT we will not be able to take on a trainee next year as planned, or replace the employee who is retiring soon. Our suppliers have already increased their prices. The larger companies we rely on will expect to pay us less for more to cover their own costs. One of the larger companies we rely on has announced that they all leaving the UK next year so there will be more competition for contracts etc. It's a mess.

What with? He's only paying himself £1000. If he pays the pot washer even at the lowest rate, he's paying for it out of that £1000 he's paying himself.

It hits a point where the amount of work and hours he puts in make it simply not financially viable for him. He might as well pack up and go work at a multinational, who can then offshore money so it doesn't go back to the tax office.

Did employer NI contributions go up then?

As I said, I don't pay my staff minimum wage, I have no desire to. It's nothing to do with not being viable. I said I'm looking to expand not lay people off. Read before you comment.

You are hilarious.

It has to be compulsory because most business owners would pay less if they could. If a business pays NMW then they would pay less if they could. Before these mandated rises most NMW employees had never had a pay rise. Employers can not be relied upon to treat their staff well out of the goodness of their hearts, most must be forced with legislation.

If you stop Buy to Let (as the Govt seems to be doing) where are all the tenants going to live? Council houses won't go up overnight (or probably in the right place)

I don't pay corporation tax, I'm a sole trader. It isn't minimum wage rises that's the issue on its own. It's the lowering of the employer NI threshold, the hovering around doing away with business rates relief for small businesses. At least the Tories were going to reduce my NI bill. I don't get sick pay, maternity pay, holiday pay, pension contributions, on the contrary I have to earn enough to pay those bills for other people on top of everything else. So rather than becoming a fair employer that pays a decent wage to people and treats employees with respect, I simply don't become an employer. Meanwhile people moan they are stacking shelves at Asda for minimum wage for 25 years where no one gives a shit about them.

If people think this isn't going to simply increase every day bills for people then they are stupid. Of course the conglomerates that rule the roost will up their prices and they are supplying the stuff that people actually have to pay for like food and utilities. People will pay the increased amount while demanding another pay rise. The fat cat shareholders get richer and the struggle continues for every other fucker.

And whilst that system is abused, many businesses can only afford to pay staff when they need them

So if they are made to pay them when they don't, they'll be laid off.

It's because if your business is no longer financially viable then logically you should probaby wind it up and get a job instead. Obviously you're free to pay yourself less than minimum wage if you want to or believe that things will pick up, etc but that's the risk you've taken on. You knew that when you started a business, presumably you thought the rewards would be worth the risks but like so many before you you may have been mistaken.

You don't get to exploit people for cheap labour because you want to run a failing business. Come on now, you know that's not fair!

A person's business failing is a personal tragedy of course but it doesn't entitle them to share their misery around. Any viable gap in the market will be filled so it's not like businesses are irreplaceable either.

The blinkered view on MN of business owners is mind-blowing.

They shouldn't.

Housing benefit has inflated rents.

As a pp said we need to look at housing costs.

Without that nothing will change.

Pubs are currently going out of business at an alarming rate.

Nurseries are also facing similar problems.

The numbers going out of business is something that has been well publicised in the press over the last couple of years.

Well you can waved goodbye to a lot of nurseries and care companies
people can barely afford them now let alone when they increase there rates to accommodate NMW

29 pubs are closing a week. My relative pays himself 1000 pounds a month from the business. He can't afford to pay pot washers 12 an hour ( plus 12% holiday pay) Fact.

You only pay employees £60k per year because you can afford that. Ultimately you can choose to pay less, though that might mean you can't hire the best staff and be competitive commercially as a result. But you do ultimately have a choice. And you can increase wages in line with profits/performance - or equally freeze them.

The trouble for a small business employer is how crucial staff are to them and how they have no choice over these wage increases. They are at the mercy of policy makers rather than making rises and wage decisions based on the commercial viability of the business.

The compulsory part of the NMW is the problematic bit. Its not a rise itself as such. Its the fact its out of the control of the business managers.

Exactly. My job is high stress, keeps me up at night and lots of responsibility. I’m also degree educated with years and years of experience.

Still only earn NMW though, teaching is a vocation so they say . .

Those saying a business isn't a business unless they pay £12 and hour.

How much are you willing to pay for a coffee?

How much are you willing to pay for a nursery place?

Our food prices have been historically low, they will all go up if everyone is earning an increased wage.

How much would you want as supervisor, team leader, manager?

Do you think the train drivers and junior doctors are going to be happy with their pay rise now the lowest has jumped?

MN hates big businesses and share holders, but there are so many small businesses in that make a living and not a fortune.

How many closed when the NMW rose last time?
We can’t continue a system where the tax payer subsidises business owners.

Ain't that the truth😫

I don't pay my staff minimum wage, experience deserves decent pay. And I can pay my staff more, but my prices will have to go up in order to compensate, which means I will sell less, so there will be less in the pot to pay staff. Fair enough if I could cut back on my shareholder pay or how much my CEO earns, but wait, I'm a single business owner, I don't have either of those things, and leading a basic lifestyle as it is. Perhaps I could pay less VAT instead? Oh wait, nope. I know, I'll just earn £6 an hour so I can employ other people because that appears to be what people think is the answer.
Tell you what, run a small business, then come at me with your comments. Why is there this thing about business owners rolling in dosh?! It's an automatic assumption. Business owner = rich and not paying their fair taxes.

Where do you get the idea this is a labour policy?
If you really want to talk about anti business parties you can thank the tories for raising the marginal corporation tax rate from 19 to 25%!

The minimum wage was raised last year to 2/3 of UK median wage because that's what the low pay commission told the (last) tory government to do.

This is a case of "independent body makes recommendation which is likely to be approved in the budget" like the minimum wage has been for the last decade

The extra thing that has happened now is that the minimum wage ( again was set by the Tories at 2/3 of the UK median wage), and reached that this year.

Labour have changed this by asking the low pay commission to take the cost of living into account in future, and current predictions are that it will increase further. [Source.](https://questions-statements.parliament.uk/written-statements/detail/2024-07-30/H
LWS44)