October 15, 2015

The Living Wage

Although I am certainly not against raising everyone out of the poverty line, I, amongst many am concerned as to how the introduction of the Living Wage of £7.20 for workers aged 25 and over will affect the trade.

The trade has had many hurdles which have resulted in closures, and although the recession has eased, yesterday it was reported that Scotland has had negative growth in the last quarter, and against the norm for the rest of the UK, unemployment has increased, and pubs are still closing at the rate of between 13 and 29 per week.

There are few ways that productivity can be increased to cover the increase in the hourly rate, with the other option being increasing prices. If all businesses are in the same position, and raise prices, then the Living Wage will not go as far, and will need to be raised, starting a vicious cycle, with all the knock on effects. I am no economist, but that sounds bad to me..

Read what the Morning Advertiser says here

Tags: Living Wage

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