23 September 2014
"For small, labour-intensive hairdressing salons, a minimum wage of £8 an hour would be completely unaffordable. Conditions on the high street remain challenging and, our research has shown, for many salons the economic recovery is patchy, if it’s there at all.
“But a lot can happen between now and 2020 and, in fact, if the wage continues to rise in the way it has been in recent years, we are likely to hit £8 an hour by 2020 anyway.
“To that extent, Mr Miliband’s pledge does have the potential to be a solution to some of the wider concerns about low pay. Moreover, if consumers feel more confident about the pound in their pocket, that will feed through on to the high street.
“But long-term above-inflation increases in the wage must be accompanied by increased support for small businesses, both in terms of tax breaks and incentives but also around areas such as compliance and administration of the wage.”
National minimum wage rates are due to rise from October 1, 2014, and will be: