FSB welcomes 'sensible minimum wage'

Date: 5th March 2008

The Federation of Small Businesses (FSB) has today welcomed the government's plans to increase the national minimum wage - in line with inflation.

From October, workers over the age of 22 will be entitled to at least £5.73 an hour, a minimum wage increase of 3.8 per cent.

The FSB claims this "sensible" increase should not impact too heavily on the company accounts of small firms.

Alan Tyrell, employment chairman for the FSB, commented: "We are pleased that the government and the low pay commission have heeded the FSB's past concerns when increases were well above the rate of inflation. A sensibly set national minimum wage is in the interests of both employers and employees."

The federation claims that small business finances had been put under strain in the past by high minimum wage increases - particularly in the leisure and catering sector.

Mr Tyrell claims the government should increase the tax threshold for low earners, in order to improve their situation.

According to the government the minimum wage has increased by almost 60 per cent since it was first introduced in 1999.