New minimum wage concerning for hospitality, says restaurateur

A business owner said the new national minimum wage could "force" people in the hospitality industry to take on fewer staff.

The government has announced new hourly national minimum rates, up by 50p to £12.71 for over 21s, up by 85p to £10.85 for those aged 18-20, and up by 45p to £8 for under-18s and apprentices.

Restaurateur Harry Parkinson, of Plates and Grapes in Hagley, said: "With the rising costs it's making it less likely for people like myself to be able to afford to employ people who haven't got the skills and train them up to the standard we need."

The Low Pay Commission, which recommended the rises, argued previous minimum wage rises had "not had a significant negative impact on jobs".

Parkinson, who opened his new tapas bar on Wednesday, said: "It's definitely a challenging time with all the rising costs, and to build some consistency at the moment feels more difficult than it ever has been."

Discussing the minimum wage increase, he said: "It just forces you to take less staff on.

"Hospitality is such a large contributor for 18 year olds, or people who have just come out of school or college and looking for their first jobs.

"We want to pay everyone a fair wage, that's not something that would even cross my mind [not to do].

"I do pay all my staff a fair wage, they're an extremely valuable part of my business and I'm sure anyone in my position in hospitality would agree."

Prime Minister Sir Keir Starmer said wages were going up "for the lowest paid", but said the government "must go further to bear down on costs".

Lord Richard Harrington, ex-Conservative MP who is now chairman of Make UK, the representative body of UK manufacturing, told BBC Radio 4's Today: "I don't think any of our members want to exploit working people and pay them a wage they can't live on."

He added businesses "want to take on young people, they want to take on apprentices, but it's a lot of money [to pay] for an 18-year-old who probably isn't fully trained".

Business Secretary Peter Kyle defended the increase, stating: "I am not going to progress our country and have it moving forward on the back of screwing down on low-paid workers."

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