{"id":2966,"date":"2017-09-05T07:56:21","date_gmt":"2017-09-05T07:56:21","guid":{"rendered":"http:\/\/my-brains.co.uk\/jackross\/?p=2966"},"modified":"2017-09-27T15:47:32","modified_gmt":"2017-09-27T15:47:32","slug":"rising-national-living-wage-hits-sme-profits","status":"publish","type":"post","link":"https:\/\/my-brains.co.uk\/jackross\/rising-national-living-wage-hits-sme-profits\/","title":{"rendered":"Rising national living wage hits SME profits"},"content":{"rendered":"
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The NLW increased from \u00a37.20 to \u00a37.50 per hour on 1 April 2017.<\/p>\n

Out of 835 businesses surveyed by the Federation of Small Business (FSB), 39% have put up prices to cope with the NLW increase.<\/p>\n

Almost one in four (24%) firms either cancelled or downscaled investments, while 22% reduced working hours and 19% hired fewer employees.<\/p>\n

43% of businesses increased wages in line with the NLW, suggesting the majority of owners are already paying their workers above the new rate.<\/p>\n

Mike Cherry, national chairman at the FSB, said:<\/p>\n

\u201cSmall businesses owners have demonstrated their resilience in meeting the challenge set by the NLW, with many cutting their margins or paying themselves less to pay their staff more.<\/p>\n

\u201cIn sectors where margins are tight, small firms are resorting to more drastic measures to cope with the NLW. It is vital the NLW is set at a level the economy can afford, without job losses or harming job creation.\u201d<\/p>\n

Dealing with the wage rise<\/span><\/h2>\n

Less stressful, but far from straightforward, ways to manage the costs of the NLW include:<\/p>\n