Minimum wage is having an impact (From The Wiltshire Gazette and Herald)

Minimum wage is having an impact

NEW research is showing that the national minimum wage is having an increasing impact on small businesses.

According to a survey by Association of Chartered Certified Accountants, businesses are having to change the way they operate.

For the first time, less than half, around 43 per cent, said they had been unaffected by having to accommodate the minimum wage. This contrasts with 71 per cent in 1999 and 62 per cent in 2000. The minimum wage was increased this year to £4.85 per hour for adults. Among the main changes that businesses have made to their working practices, 23 per cent said they have frozen staff recruitment, 18 per cent have reduced overtime and 17 per cent have cut working hours.

But it was considered by a majority of members that the new minimum level of £3.00 per hour for 16-17-year-olds would have no effect on their clients' business recruitment policies.