Retailers have called on the Low Pay Commission to offer more transparency in the way it sets the minimum wage.
Half of independent retailers site wage costs as a key concern for their business, according to the British Shops and Stores Association’s Health of the High Street report.
More than half of respondents said the introduction of the minimum wage has hit their profits since it was introduced in 1999, and 33% said it had led to staff cuts.
Speaking at the launch of the report today, John Dean, chief executive of the BSSA, said:
“There is no doubt that the setting of the minimum wage is a black art known only to the Low Pay Commission. There needs to be some kind of measurable index so people can see why it’s been set at what it is.”
Another key challenge for the retailers surveyed was the cost of property – cited by 45% of respondents. According to research on rating property services acquired by the BSSA, retail property costs in London increased by more than 24% between 2002 and 2006.
Dean said the increase in property costs was made worse by the fact that most independent retailers on the high street occupy premises valued above the £10,000 threshold for the Small Business Rate Relief Scheme.
Dead added: “Raising the threshold from £10,000 to £20,000 would make a huge difference in encouraging young entrepreneurs to have a go at setting up on the high street.”
© Crimson Business Ltd. 2007
