ACS

ACS (the Association of Convenience Stores) has warned that the decision to increase the minimum wage for adults by 2.2% to £5.93 will threaten job creation in the retail sector.

ACS Chief Executive James Lowman said: “Throughout his budget speech the Chancellor stressed the need to support the economic recovery and not to threaten jobs. We know that when faced with increases in the minimum wage retailers will cut back on jobs and hours so we think that this is an ill judged and mistimed decision.”

“We argued strongly that there should be no increase in the minimum wage this year. This increase follows a series of Ministerial commitments to maintain consistent increases over the next 5 years, which is a political promise that local shops will struggle to afford.”

Information that the Government was accepting this recommendation of the Low Pay Commission was contained in the full budget report

Contacts:

Shane Brennan Public Affairs Director
01252 515001 07921 372978
Chris Noice Communications Co-Ordinator
01252 533013
Notes to Editors

1. ACS (Association of Convenience Stores) is the voice of local shops, representing over 33,500 convenience stores. ACS helps local shops thrive through lobbying, support and networking opportunities.

2. Full Budget report Chapter 5 Paragraph 5.15 http://www.hm-treasury.gov.uk/d/budget2010_chapter5.pdf

“This week, the Government will publish its full response to the recommendations from the Low Pay Commission on the National Minimum Wage (NMW). Budget 2010 announces that, in line with these recommendations, the headline rate of the NMW will rise by 2.2 per cent to £5.93 in October 2010. This increase strikes a balance between helping low paid workers and families, and ensuring that the rise does not damage their employment chances. When increased in October 2010, the NMW will have risen by over 22 per cent in real terms since the Government introduced it in 1999.8

There is no detail on the development and youth rates,

3. ACS submitted written and oral evidence to the Low Pay commission arguing for no increase in the national minimum wage. ACS also facilitated visits to member businesses. .