Autumn Statement: Businesses are Expected to Bear the Financial Burden.

According to a bar owner in the West Midlands, businesses will be compelled to allocate increased payments in the aftermath of the Autumn Statement.

Anne-Marie Simpson expressed that Chancellor Jeremy Hunt’s decision to raise the national living wage to £11.44 per hour was positive news. Nonetheless, she emphasized that businesses would be responsible for covering the associated costs.

In the statement, Mr. Hunt also revealed a reduction in National Insurance (NI) rates and an increase in benefits. Despite this, some workers informed the BBC that they found the wage increase to be “amazing.”

‘Reciprocity’

Ms. Simpson, co-owner of Simpson Bar in Sutton Coldfield, expressed, “It really is probably the worst thing they could have done for hospitality at this time. The increases generously advised to the minimum wage aren’t funded by the government – they are funded by business.”

“We are already paying over the minimum wage for many staff; this now takes a further hit at support staff and more junior staff and just adds cost pressure onto business. These measures, in particular, are likely to increase costs to customers and take us back into an inflationary cycle.”

Similar sentiments were echoed in nearby Kidderminster.

Francesca Harmon concurred that the wage increase would impose additional pressure on businesses.

Francesca Harmon, the owner of a hairdressing salon in the town, remarked, “It is great with some of the reductions, with National Insurance being reduced from 12% to 10%. But, on the other hand, obviously they are putting the cost of the national minimum wage up.”

“Great for my employed staff, but not so great as the employer that now it is an extra £1 per hour, I think, it is going up. So, actually, on one hand, the government is giving us back a bit of money, and taking it away in the other hand.”

Katy Hutchins mentioned that the wage increase would assist workers in managing their bills.

Katy Hutchins, a minimum wage worker, expressed her positive view on the wage increase, stating, “That’s really going to help significantly with food costs and fuel costs, as well as the bills at home.” She described the rise as “amazing.”