Insight Associates provide outsourced accounting and Finance Director services to ambitious and growing businesses. We work as your only resource or with existing staff to give you complete financial support including monthly management accounts, high level financial advice, robust controls and financial systems, funding and business planning, payroll & compliance, VAT returns and statutory compliance.

Successful business leaders have all the information they need to make good decisions…Do You?

Friday, September 11, 2015

UK Employers Fear the Impact of the Living Wage

The FT recently reported that UK employers fear the impact of the living wage (FT, 8 Sept, S Gordon/G Parker) and that the minimum wage announced in George Osborne's summer budget is affecting recruitment and growth prospects.

Whilst the Treasury said the Office for Budget Responsibility expects the national living wage to help 2.7 million low paid workers it does come at a cost – and those extra costs could mean up to 60,000 job losses.

The FSB’s latest survey of 1500 smaller businesses suggested the number of companies expected to grow had fallen and hiring and investment plans had cooled.

The national living wage is a serious challenge for small firms at the lower end of the pay scale such as hospitality, retail and social care.

So what’s the answer here?

Well, whilst we don’t advocate circumventing paying the national living wage by taking on more younger and self-employed workers we do think business owners need to have a clear plan for this change and others such as auto-enrolment.

Talk to us about any concerns you have.

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Insight Associates, Insight House, Riverside Business Park, Stoney Common Road, Stansted Mountfitchet, Essex, CM24 8PL, UK
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Insight Associates is a trading name of Financial Catalysts Limited. Registered in England and Wales Number: 5670047. Registered Office as above. Disclaimer | Cookies