29-04-2008
FPB reacts to minimum wage moves
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The Forum of Private Business (FPB) has been angered by government moves to increase the national minimum wage following the removal of the 10p rate of income tax.
To protect low-paid workers following the change, the government has approached the Low Pay Commission in a bid to raise the minimum pay rate.
However, the FPB argues that businesses in the UK should not be asked to shoulder the burden of the income tax amendment and believes that decisions on low wages should be made following "sound economic calculations".
Phil Orford, chief executive of the forum, said: "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."
The FPB is also campaigning for discussion to begin in parliament on rises in small businesses' corporation tax.