Not good for small business (From Warrington Guardian)

Not good for small business

A PRESSURE group last week warned that increasing the minimum wage could cripple small firms.

The Forum of Private Business in Drury Lane, Knutsford, said proposals by the Trades Union Congress were unaffordable.

"The minimum wage is now becoming dangerously high and any further increase could have a devastating effect on the small business community," said chief executive Nick Goulding.

The TUC recently said the hourly rate of the minimum wage should rise from £4.85 to £5.35 next year and then to £6 in 2006.

But a survey of the Forum's 25,000 members this month revealed that almost 40% believed the proposal would be bad for business.

"It is actually small businesses that are hit hardest especially those businesses in poorer and remote areas," said Mr Goulding.