94% of businesses reported an overall increase in the costs of running their business with 69% reporting an increase in staff costs. As the Low Pay Commission gather evidence for their annual report to Government on the future level of the minimum wage, the Forum made the point that whilst inflationary pressures are squeezing households they are also constraining small businesses.
The Forum told the Commission; “many small businesses are still struggling with ever increasing costs, and employment remains one of the largest of those costs. It is essential the right environment is created to enable businesses to take advantage of the improving economic situation and grow.”
Referendum 205 revealed prices for micro, small and medium sized employers had risen by 6%, far faster than for the rest of UK society. These rising costs particularly in energy, transport and marketing, are hampering businesses ability to grow with 63% having experienced inhibited growth.
For the summary or to download the full report click here. The Low Pay Commission will submit their report to Government in February 2014.