ACS

ACS has given face-to-face evidence to the Low Pay Commission (LPC) as part of the latest consultation on the National Minimum Wage. ACS has made a number of written submissions emphasising the impact any increases have on local shops. The hearing was an opportunity for ACS to reinforce concerns surrounding the National Minimum Wage and the impact it has on small retailers in particular.

The Commission is consulting on a possible change to the National Minimum Wage rate. The Commission is also consulting on the possibility of changing the way in which the rate is set, for example using a more predictable approach such as tying future changes in the rate to an economic indicator such as inflation.

Recommendations will be made in February 2008 and recommended rate changes will come into force on 1st October 2008.

ACS Chief Executive James Lowman said; “We feel that any future increase of the National Minimum Wage could have a serious and significant effect on the financial viability of retail businesses. The effects of increases have been a reduction in the number of jobs in the sector and a reduced ability for retailers to invest and grow.”

“We also told the Commission that we believe it is right to tie future rate changes to an economic indicator. The benefit would be that we would see an end to the unpredictable inflation busting increases in wages that have been a feature of the NMW since it started. This would allow businesses greater ability to plan and decide on investment in their business.”

Independent retailer Jonathan James was part of the ACS team at the hearing: “It is important for the Commissioners to hear first hand from the independents. I was glad to be able to explain how the National Minimum Wage directly affects myself and other ACS members. The fact is that the decisions they make have a big impact on our trade. I think that we got our message across well.”


Contacts:
Shane Brennan - Public Affairs and Communications Manager
01252 515001/ 07921 372 978
Nina Collins - Communications Co-ordinator
01252 515001
Michael Saxton/ Julie Kirby - Grappa PR
020 7602 9222


Notes to Editors:

1. ACS (Association of Convenience Stores) is the voice of local shops, representing over 33,000 convenience stores. ACS helps local shops thrive through lobbying, support and networking opportunities.

2. Jonathan James is an independent retailer operating three forecourts and 2 grocery stores in Cambridgeshire. Jonathan is also ACS Vice Chairman.

3. The NMW rate is currently

a. Adult rate (22 and over) £5.52
b. Development rate (18-21) £4.60
c. Youth rate £3.40