Retailers have today warned that another rise in the National Minimum Wage could lead to more than 20,000 jobs being lost and would cost the retail sector an extra £2.7 billion.
In a BRC survey on the impact of the NMW, 44 per cent of retailers said they would be forced to make job cuts if the Low Pay Commission recommends an increase to £5.20. The survey also revealed that the rise to £4.85 has already cost retailers £1.7bn.
Dr Kevin Hawkins, BRC director general, said: "There is clearly no justification for further increases to the NMW in real terms. The rise to £4.85 has already cost the industry £1.7bn and already jeopardised jobs.
"The survey has confirmed retailer's fears, that an ill thought out decision on this will hit every retailer hard. The retail industry employs 2.8 million people - 11 per cent of the total UK workforce but many retailers will have no choice but to make job cuts.
"We have provided the evidence and it is now up to the Low Pay Commission to act appropriately and keep the wage at a sensible level in line with current economic conditions."
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