Possible increase in minimum wage
Licensees are preparing for yet another potential wage increase after plans to raise the minimum to above the £5 mark.
Gordon Brown will raise the minimum hourly rate from £4.85 to £5.05 in October, and could take it up again to £5.30 the following year.
The minimum wage issue has again raised a mixed reaction from licensees, with some believing staff should be on this amount already and others claiming it will seriously damage their business.
Jacqui Kilroy at the Merry Monk in Leeds, West Yorkshire, said: "A rise will have a devastating effect on my business. It will ultimately mean we have to raise our prices, customers will obviously then turn to the likes of Wetherspoons who can offer cheaper drink and we'll lose out."
The minimum wage was increased last October to £4.85 per hour for those aged 22 and over and £4.10 per hour for those aged 18 - 21.
The Low Pay Commission is believed to have agreed to further rises.
Licensee Richard Slade, of The Magnesia Bank, North Shields is among those in the trade who support a raise.
"I'm in favour of the increase," said Mr Slade. "It would encourage the raising of skill levels and the professionalism of staff and that should be rewarded."
Tony Payne, the Federation of Licensed Victuallers' Associations' chief executive, said he had only recommended a rise to £5 an hour to the Low Pay Commission.
"We support £5 an hour as a minimum wage and quite a number of licensees we have spoken to think this is fair," he said. "The rise also falls in line with trade unions."
"We could look at £5.30, but that is a six percent increase. If we keep going above the Retail Price Index (RPI) we have a big problem. If we keep things tied to the RPI it will be OK."
