National Minimum Wage

The increase in the national minimum wage from next week impacts business start-ups by further raising their base costs of hiring employees. The timing of the rise from £5.52 to £5.73 for each hour worked could not have come at a worst time for people starting a business.

With credit terms squeezed from all areas, from banks to even trade creditors as some have reported, this further drain on cash and liquidity in general will almost certainly be the back breaking straw for some small businesses.

The main instigator of the minimum wage increase is the Transport and General Worker Union putting pressure of the Government to not forget its roots in the working classes.

The weakened Labour Party conceded on several fronts and for the first time granted an increase which set the minimum wage growth rates above that of the average salary climb of since its introduction in 1999.

It may well turn out that the people the increase is supposed to help end up blaming a Government which they will hold responsible for losing them their jobs.