SMEs 'affected' by minimum wage increase

The impact of the forthcoming rise in the UK's minimum wage levels will particularly be felt by the country's small to medium-sized enterprises (SMEs), it has been claimed.

Richard Dodd, the head of media at the British Retail Consortium (BRC) has confirmed that SMEs will be disproportionately affected, given that it is harder for such firms to adjust to increases in cost.

"It certainly has a disproportionate effect on smaller retailers who are less easily able to absorb the extra costs," said Mr Dodd.

"It's obviously not the only cost pressure that smaller retailers face, they face a whole range of other problems, but minimum wage has a bigger effect on smaller retailers."

Mr Dodd also noted that, compared with the effects of other expenses, the impact of the minimum wage is greater.

Also as a side effect of the minimum wage, it was also noted that the number of positions within the SME retail sector is falling.