Minimum wage rise delayed 'for two months'

Date: 26th January 2009

A rise in the national minimum wage (NMW) has been delayed for at least another two months, giving businesses an opportunity to get to grips with the recession.

The government's Low Pay Commission had been due to make a decision on the NMW - which currently stands at £5.73 for adults - by the end of the next month, but will now do so in May.

According to the British Chambers of Commerce (BCC), a rise in the NMW by the same amount seen in 2008 would potentially cost small firms £300 million.

David Frost, director general of the BCC, commented: "Most businesses are prioritising survival at the moment.

"A rise in minimum wage would not help firms hold onto staff and would simply add to unemployment."

He added that the group was not against the NMW increasing when employment was high, but adding to it during a recession made "no sense".

Small businesses should also remember to complete a self-assessment tax return before the January 31st deadline, with all submissions being due online to HM Revenue and Customs.