Autumn Statement: ‘It’ll be businesses who are paying’ – BBC News

A West Midlands bar owner said businesses will be forced to pay out more following the Autumn Statement.

Anne-Marie Simpson, said Chancellor Jeremy Hunt’s increase to the national living wage to £11.44 per hour was good news – but traders would have to foot the bill.

In the statement, Mr Hunt also announced a cut in National Insurance (NI) rates and a rise in benefits.

However, workers have told the BBC said the rise was “amazing”.

Ms Simpson, co-owner of Simpson Bar in Sutton Coldfield, said: “It really is probably the worst thing they could have done for hospitality at this time.

“The increases generously advised to the minimum wage aren’t funded by government- they are funded by business.

“We are already paying over minimum wage for many staff; this now takes a further hit at support staff and more junior staff and just adds cost pressure onto business.

“These measures in particular are likely to increase costs to customers and take us back into an inflationary cycle.”

Her feelings were shared in nearby Kidderminster.

Francesca Harmon, who owns a hairdressers in the town said: “It is great with some of the reductions, with National Insurance being reduced from 12% to 10%

“But, on the other hand, obviously they are putting the cost of national minimum wage up.

“Great for my employed staff, but not so great as the employer that now it is an extra £1 per hour, I think, it is going up.

“So, actually, on one hand the government is giving us back a bit of money, and taking it away in the other hand.”

But Katy Hutchins, a minimum wage worker, said she thought the wage rise was “amazing”.

“That’s really going to help significantly with food costs and fuel costs, as well as the bills at home,” she said.