FPB calls for minimum wage rethink

News Article - 29 April 2008
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The Forum of Private Businesses (FPB) has urged the government to rethink plans to increase the national minimum wage to recover the money lost by the scrapping of the 10p income tax rate.

According to the organisation, the increased minimum wage could cause problems for small firms' financial plans, leading to higher prices and greater unemployment.

"This is not even a stealth tax; it is a blatant attempt to retain revenues generated by the removal of the 10p personal taxation rate by forcing businesses to bear the financial burden through increases in the minimum wage," said the FPB chief executive, Phil Orford.

The Low Pay Commission is to consider proposals from chancellor Alistair Darling and enterprise secretary John Hutton to benefit lower-paid workers who it is believed could struggle following the removal of the 10p tax.

According to the FSB, any changes to the national minimum wage should be based on "sound economic calculations", so as not to as greatly impact the accounts of small firms.

Established in 1977, the FPB represents 25,000 UK-based private firms.

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