“It is wrong to expect retailers to bail out the Government’s incoherent tax policies, and we will strongly oppose any move to do so.”
James Lowman, head of the Association of Convenience Stores (ACS) worries that low paid workers in retail will may claw back their losses if the government chooses to reform the minimum wage as a way of making up for the abolition of the 10p tax rate.
There are already plenty of part time and full time workers who need to rely on additional state benefits in order to top up their low wage packets and the rates are already due to increase in October. The hourly rate for 18 to 21-year-olds will increase from £4.60 to £4.77, while the statutory wage for 16 and 17-year-olds will go up from £3.40 to £3.53. The rate for those ages 22 and over will increase by 21p to £5.73 per hour.