The Association of Convenience Stores (ACS) has reinforced its concerns surrounding the national minimum wage and its impact on small retailers, by giving evidence to the Low Pay Commission as part of its latest consultation.

The commission is consulting on a possible change to the national minimum wage rate, as well as the possibility of changing the way in which the rate is set, for example using a more predictable approach such as tying future changes in the rate to an economic indicator such as inflation.

The ACS provided face-to-face evidence. Recommendations will be made by the commission in February 2008, and recommended rate changes will come into force on October 1, 2008.

ACS chief executive James Lowman said: “We feel that any future increase of the national minimum wage could have a serious and significant effect on the financial viability of retail businesses. The effects of increases have seen a reduction in the number of jobs in the sector and a reduced ability for retailers to invest and grow.

“We also told the commission that we believe it is right to tie future rate changes to an economic indicator. The benefit would be that we would see an end to the unpredictable inflation-busting increases in wages that have been a feature of the minimum wage since it started. This would allow businesses greater ability to plan and decide on investment in their business.”

Independent retailer Jonathan James was part of the ACS team at the hearing. “It is important for the commissioners to hear first hand from the independents. I was glad to be able to explain how the national minimum wage directly affects myself and other ACS members. The fact is that the decisions they make have a big impact on our trade. I think that we got our message across well,” he said.

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