“Minimum wage hike could be coming to Britain”
www.cnbc.com/id/101684423
“Britain's opposition Labour party will pledge to raise the statutory minimum wage if it wins the next election, as the wages of economies' lowest paid workers make headlines worldwide”.
“Labour party leader Ed Milliband will announce plans to increase the minimum wage over the course of the next parliament by linking it to the UK's average earnings.”
“The minimum wage in Britain is currently £6.31 ($10.62) an hour, and is due to rise to £6.50 in October. It is set by the Low Pay Commission, an independent government body.”
“Labour has not revealed what it would raise the minimum wage to, saying the exact amount would be announced closer to the next general election in May 2015.”
“In the U.S., President Barack Obama is trying to raise the federal minimum wage from $7.25 an hour.”
Whether a business is small, medium, or large, it has to plan/budget ahead, the largest several years, looking to invest new money domestically, overseas - or even relocate existing businesses to business friend countries in order to compete in terms of Productivity, in a global market place where the cost of doing business can determine if a profit is made, or even a company’s medium to long term survival.
www.investopedia.com/terms/p/productivity.asp
Wages are a major component of Productivity, so how can ANY blanket national formula work that ties in a national wage average of ALL business sectors, with lower profit/profit margin sectors, where trying to ‘keep up’ with a national wage structure will either make them shed staff, or go out of business.
As the UK recovery gathered pace, IMO the economy could quickly have a dangerous UPWARD SPIRAL of the BoE raising interest our Base Rate to contain inflation, and minimum pay rates continuing to rise along with the economy - which will both become wage growth inflationary and counter economic growth as UK businesses become less Productive – resulting in a kind of self induced ‘norm’ of Stagflation (flat economy & high inflation) affecting peoples spending power.
What with populist rent controls that could smother the Private Rental market when we need it most;
www.mumsnet.com/Talk/in_the_news/1977704-UK-Interest-Mortgage-Rates-WHO-S-in-control?pg=1
And an ‘energy price freeze’ when Energy Minister Miliband left the Uk in a dire nuclear energy situation, totally reliant on the Private Sector to invest in the UK, to stop our lights going off within years;
www.mumsnet.com/Talk/politics/1983467-UK-Energy-Policy-Price-scandal-outages-due
Miliband’s attempts at unworkable State controls, to curb the effects of a SEVERE recession plus the home and energy shortages that are all of their own making, may be populist vote winners that resonate on the doorstep – but they send major alarm signals to business (and landlords) of the negative conditions to expect from 2015 under a Labour administration.
I would therefore not be surprised if on the continuing weight of planned State interference businesses hold back on the further investing and creating of new jobs in Britain - AND put in place contingency plans to scale back the size and employment numbers of their current businesses - until after the 2015 General Election.
In 2015, the UK will still have a large annual Budget deficit and therefore accumulating National Debt; Mr Miliband’s ‘cost of living offers’ may not DIRECTLY increase them via state spending, but as the UK needs sustainable economic growth and/or much higher taxes TO PAY THEM OFF continual threats of State intervention that looks good in pamphlets but will kill off investment, is economic madness.
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Politics
Labour’s Minimum Wage Link – will affect the UK recovery/jobs.
39 replies
Isitmebut · 20/05/2014 11:10
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