Businesses that manage to absorb the extra wage bill would be forced to abolish paid breaks, cut working hours and increase workloads to recover the costs.
According to ACCA, at the present rate of pounds 3.70 per hour business can cope. However if the hourly wage were to rise to pounds 5, it believes this would represent a serious problem for its clients.
David Harvey, ACCA’s head of small business said the ceiling price of pounds 5/hour is the point at which businesses became unproductive and said many companies had already been adversely affected even at the current minimum wage level.
A higher level across the board would close businesses in regions ‘where the national minimum wage was high in relation to costs and prices in the local economy’.
The ACCA survey included 500 of its members who represented 10,000 businesses.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Just one half of UK practices have implemented a pricing structure around auto enrolment implementation and advice - with many suffering increased costs
Deloitte's north-west Europe foray; BDO, Smith & Williamson investment paths; Shelley Stock Hutter; and Wilkins Kennedy discussed by editor Kevin Reed on our Friday Afternoon Live broadcast
Accountants should alter their perspective on auto-enrolment to maximise business opportunities, according to Eric Clapton.