Over a third (39%) of owner managed businesses want the new government to provide tax breaks that will allow them to pay their employees better wages, according to the latest release of the Owner Managed Business (OMB) Barometer from Bank of Cyprus UK.
The research found that in the last quarter OMBs were increasingly confident about their business prospects, with 25 percent of OMBs stating they intend to hire more staff in the next 12 months, an increase from 19 percent in December 2014.
Tony Leahy of Bank of Cyprus UK said:
“OMBs understand that realising their growth prospects is closely entwined with the commitment and efforts of their employees. The research shows there is a clear desire on the part of OMBs to ensure their employees are paid fairly, but it is often a big challenge for smaller businesses to pay higher wages.
The living wage in the UK is currently calculated at £7.85, or £9.15 within London. The Scottish National Party have been pushing for a raise in the National Minimum Wage to meet this figure for years, making it a focal point of their campaign this election season.
Leahy added:
“The key themes of the recent election campaign have been a focus on maintaining the recent economic progress made in the UK whilst ensuring the benefits of this progress are more closely felt by working families. It therefore follows that by taking the requisite steps to help small businesses, our newly-elected government can go a long way to realising both of these key objectives.”
Steff joined the HRreview editorial team in November 2014. A former event coordinator and manager, Steff has spent several years working in online journalism. She is a graduate of Middlessex University with a BA in Television Production and will complete a Master's degree in Journalism from the University of Westminster in the summer of 2015.
This is a depressingly predictable result from a superficial survey. Of course many low pay business owners would like the taxpayer to directly subsidise them. Who wouldn’t? The State already faces a big bill in tax credit payments because of the high incidence of low pay in the UK. The sustainble solution is to reduce the incidence of low pay, not subsidise it. That can only be done by persuading and supporting more owners to develop their businesses and workforces in ways that over time will allow them to raise wages towards LW level by for example investing in skills, providing progression, and adopting better business practice.
This is ridiculous.
How can any business expect the taxpayer to pay the wages of their employees? If they cannot afford to pay people, they shouldn’t employ them.
This also applies to all tax credits – why should I subsidise employer profits by subsidising their wage bill?
There should be no support whatsoever for working people, employers should simply pay a fair, living wage. If they can’t afford to, don’t employ.
Couple this with a ban on benefits of any kind to newcomers to this country and maybe the money could be used to fund lower tax and NI payments for employers. This (if they shared their profits fairly), might enable employers to better pay their employees.