I think the LLW should be law. But imo you cannot do this without providing for small businesses or they will reduce the amount of people they employ due to increased cost of doing business. I believe you will drive some out of business
I would try to help them by looking at tax. Firstly make the whole thing far simpler for a business to be compliant. Surely that alone will save a business money in first place.
Perhaps then a sliding scale on corporation tax or increasing the threshold at which they pay VAT or decreasing the really unfair business rates. Or a combination of these. I’m no expert here. Make up for lost revenue by (the old chestnut) making large companies who avoid tax to pay it.
Ok. Thats an answer.
I don't agree increasing minimum wage to Living Wage will necessarily cost jobs. As I pointed out in post #182 when the Labour government brought in minimum wage Tories and business argued that it would be disaster. Now it's accepted even by Tories.
As
T & P points out if business plan can't pay decent wages then business shouldn't survive. This is fair enough imo. I'm no great supporter of capitalism. But it's about sink or swim. The State protecting property rights but also enforcing bottom line of how capitalist competition should work. Left to its own devices capitalism imo will lead to the "car wash" economy.
So yes I think some business should be allowed to fail if they can't pay decent wages. The introduction of minimum wage didn't lead to worse life for the working class. Despite warnings from business lobby and Tories. And Im not saying that to be harsh. Capitalism works on basis of crestive destruction/ competition. Not my idea. But that's how it is.
One argument , reformist, would be that the state should set the bottom line in which capitalism should operate. Capitalists can't do that.
8ball post @869 makes correct point imo that its
It benefits capital to pretend that's how it works, but on closer inspection it falls to pieces.
8ball is right there is a lot of ideological obfuscation dressed up as being "realistic" we are supposed to swallow.
And I still hold to what I said back in #870 Since the beginning of modern capitalist economy in 19c bosses have been crying wolf at any improvements for the working class. Capitalism doesn't like it but has adapted to social reform. Last thirty years seen capitalism getting more of iit's own way. I think thats changing now.
On business rates agreed. But that's not purely an issue of wage levels. I know small business who are really worried about hike in business rates for the long term future of there business. And these aren't employers. They are sole traders or family run business. Large concerns can absorb it. Not small independent business.