Academics at the University of Stirling (UoS), in collaboration with the Scottish Grocers’ Federation (SGF), found that when taking into account statutory costs such as National Insurance and holiday pay, together with uniform and administration expenses, retailers are paying at least £16.72 an hour for every staff member, marking a real-world increase of £1.33 compared to the previous year.
The SGF is warning that 97% of retailers say they are less likely to hire staff because of NICs increasing from 13.8% to 15%, together with an increase in the NLW to £12.21. The organisation warns that if current trends continue, the National Living Wage, having risen from £7.20 an hour in 2016, will almost double within a decade.
Professor Leigh Sparks from UoS said NIC and NLW rises “affect smaller, consumer-facing businesses who employ considerable numbers of people, more than they do larger and more capital-intensive operations”.
Sparks added that convenience stores are “vitally important for tying communities together and for local resilience and service”.
Dr Pete Cheema, chief executive of the SGF, said stores “will have to think twice before taking on anyone new in the coming year”, and that it “beggars belief” the governments are “doggedly adding to the cost of employment and crippling any potential growth”.
