Press Release

FSB satisfied with in-line inflation move in National Minimum Wage

5 March 2008

The Federation of Small Businesses (FSB) is today happier with the announcement on the latest move in the National Minimum Wage which does not replicate past above-inflation increases. 

Previous increases had threatened to put a strain on small business owners and job creation in specific sectors, such as hotel and catering, and leisure, and in certain regions such as the North East and Scotland.

The FSB has always previously been supportive of a sensibly set national minimum wage.  The introduction of such a wage has served to level the playing field by curbing undercutting tactics of some illegitimate employers.

The increase takes the minimum wage from £5.52 for those above 22 years of age to £5.73 per hour. 

Alan Tyrrell, FSB Employment Chairman, said:

"The FSB has previously welcomed the introduction of a sensibly set national minimum wage.  We are pleased that the Government and the Low Pay Commission have heeded the FSB’s past concerns when increases were well above the rate of inflation.  A sensibly set National Minimum Wage is in the interests of both employers and employees." 

Alan Tyrrell added:

"A way forward to improve the position of low earners is for the Government to give serious consideration to increasing the earnings threshold for tax purposes for those at the lower end of the scale."