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Concern over rumours of 5.8 per cent rise in national living wage

Concern over rumours of  5.8 per cent rise in national living wage
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Small independent retailers are expressing their concerns at the news that the National Living Wage could increase by almost 6 per cent to £12.10 an hour from April next year.

In its latest report, the Low Pay Commission (LPC) said that wages need to rise by about 5.8 per cent to align with earnings growth. This is significantly higher than its March estimate of 3.9 per cent.


Responding, Mo Razzaq, the National President of the Federation of Independent Retailers (the Fed), said: “Small independent retailers are the backbone of their communities and as responsible employers we want to ensure we are paying a fair wage to our staff. But raising the national living wage to as much as £12.10 would be a step too far for hard pressed small businesses.

“As well as paying our staff more in wages, we must pay more in national insurance and pension costs, at a time when many other costs, including energy costs, are rising. There is no easy way for small retailers to combat these increases. As so many of the products that convenience store owners are price marked, we cannot pass these costs onto our customers.

“The only solution available to independent shop owners is to reduce staff hours and staff numbers and, somehow, take on even more hours ourselves.”

The 5.8 per cent increase was projected after the new Labour government updated the LPC's remit to formally factor in the "cost of living" when undertaking the annual review into the minimum wage. Its recommendations will be delivered next month.

Last month, Mr Razzaq wrote to the new business secretary Jonathan Reynolds to highlight the impact of higher wages on smaller businesses.

In his letter, Mr Razzaq said the Fed recognised the importance of providing a living wage for those who work in retail and ensuring that staff receive a fair wage for their work.

But he warned that the government needed to “carefully consider the impact of higher wages on independent businesses in the months and years ahead so that our members can continue to thrive.”

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Indies: It’s criminal police and government turn blind eye to shoplifting

Independent retailers are demanding tougher police action, more bobbies on the beat and harsher punishments as shoplifting levels reach an all-time high, a new survey reveals.

A whopping ninety-one per cent of respondents to a survey conducted by the Federation of Independent Retailers (the Fed) called for more police patrols on streets, while a similar number - 90 per cent - said that shoplifters should be handed harsher sentences.

Seven out of 10 respondents (72 per cent) said their stores had experienced shoplifting, break ins and damage to property, while they and their staff had been physically or verbally threatened.

Just under half of respondents (47 per cent) said they and their employees had been threatened or had suffered abuse and violence when asking for proof of age ahead of selling an age-restricted product.

Forty-four per cent reported that they and their staff had faced abuse or violence because they had refused to make a proxy sale – selling an age restricted product to a customer buying for a minor.

The results of the Fed’s survey came as new figures from the Office of National Statistics revealed that shoplifting was at a record high, with almost half a million offences recorded last year.

According to the ONS, 469,788 offences were logged by forces in the year to June 2024 – a 29 per cent increase on the previous 12 months.

The ONS added that this figure was the highest since records began – in March 2003.

“Inadequate responses from the police and a slap on the wrist for offenders means that shoplifting is soaring, and offenders are becoming more aggressive and brazen,” said Fed National President Mo Razzaq.

“From the responses we received, it is clear that real action is needed by police, by courts and by the government to stem the overwhelming tide of crime against retailers and their staff. Everyone deserves to feel safe at work and for their businesses to be protected against criminals.

“Fed members are also sending a clear message that one of the catalysts for verbal and physical abuse in stores is asking for proof of age before selling an age restricted product. If the government presses ahead with its plans to phase out smoking and vaping through a progressive ban to gradually end the sale of tobacco products across the country, independent retailers will be subject to even greater levels of violence, abuse and theft.”

Calling for action from the government and not just words, Mr Razzaq continued: “Without effective deterrent, criminals and opportunistic members of the public will continue to commit crimes.”

According to Ministry of Justice statistics, during the year to March 2024, 431 fines were handed out for retail theft under £100, while Home Office statistics for the same period show that 2,252 cautions were accepted for shoplifting.

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