Firms call for minimum wage freeze

Date: 3rd April 2009

Small businesses have called on the government to freeze the national minimum wage and help stem the tide of unemployment.

According to the British Chambers of Commerce (BCC), holding minimum wage at its current level would also help small firms survive the economic downturn.

Firms that are concerned by how a potential rise could affect them should consider consulting an accountant.

David Frost, director general of the BCC, said: "We are now in a deep recession and business cashflow is being hit.

"Freezing the minimum wage until the economy recovers will provide much needed breathing space for hard-pressed employers and will help save jobs."

If the government were to make a decision, it would likely come at April 22nd's budget address.

Despite the bleak outlook, a survey by uSwitchforBusiness.com recently found that more than three-quarters of small companies were expecting to outlast the recession.