The so-called ‘national living wage’ is a misnomer, but 16 trade organisations still want it cut.
For it to be an actual living wage, the amount paid by bosses to employees would have to be enough to ensure they did not have to claim any state benefits.
That should be perfectly acceptable to business bosses. They should not expect the taxpayer to subsidise them – especially when they take home huge fortunes in their own pay.
The UK’s top bosses gave themselves an average 10 per cent pay rise in 2015, with the average amount rising to £5.5 million.
Including pensions and bonuses, typical boss pay is now 129 times more than employees.
These are bosses of FTSE100 companies, which are predominantly hugely successful multinationals.
And they have the cheek to call for a reduction in an inadequate and misnamed ‘living wage’!
If Theresa May has any steel in her, she’ll tell these greedy executives to remodel their businesses – starting with the amounts they give themselves.
Downing Street has dismissed pressure to slow the implementation of the ”national living wage” in the face of lobbying from businesses concerned about rising salary bills.
The policy, which is expected to raise the minimum wage for the over-25s to approximately £9 an hour by 2020, was the centrepiece of George Osborne’s 2015 budget.
It emerged on Monday that at least 16 trade bodies have written to the business secretary, Greg Clark, urging him to reconsider the plans in light of the economic slowdown expected after the UK’s vote to leave the European Union.
The Treasury is braced for a wave of lobbying in the run-up to new chancellor Phillip Hammond’s first autumn statement, as trade bodies and other interest groups seize the opportunity of a new minister in charge to try to win concessions.
Hammond used a recent trip to China to promise a reset on economic policy. The independent Office for Budget Responsibility (OBR) is also expected to make sharp downgrades to its forecasts for growth when it publishes its latest projections alongside the autumn statement.
The national living wage policy already makes some allowance for a downturn in economic growth because it is set in relation to median wages, and is targeting 60% of media UK pay by 2020. The minimum wage for over-25s rose by 50p an hour in April to £7.20 as a result.
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