National minimum pay rises challenge businesses
BBCSome businesses in the South West say the rise in the national minimum wage is challenging among other price increases.
This week the national minimum wage goes up by 50p to £12.71 for over 21s, 85p to £10.85 for workers aged 18-20, and under-18s and apprentices will get 45p more to £8 an hour.
Helen Scott, from Cofton Holidays, near Dawlish, Devon, said prices would rise for customers to offset the increased pay rate. Lou Tresidder, from the Driftwood Spars pub in St Agnes, Cornwall, said due to rising costs it was "a lot more challenging" to pay above the national minimum wage.
But the Low Pay Commission, the government agency which recommended the increases, said previous minimum wage rises for over-21s had "not had a significant negative impact on jobs".
Scott said: "At the end of the day, to increase wages, you've got to increase prices.
"It becomes tricky to balance.
"While we know that the minimum wage is going to be months in advance, we can't prepare for the other unknowns that are going to increase like fuel costs and heating," she said.
Scott also said she was concerned the increase in pay would be lost in other living costs her staff faced.
Liza Salazar, who runs Kingfisher Fish and Chips in Plymouth, said the increase in wages should be offset for businesses.
She said: "I believe if the government keeps putting up minimum wage year on year it needs to be offset by something like a decrease in the VAT we have to pay as a small business.
"We have so many costs and they're all going up, so a decrease in VAT would be a huge, huge benefit for us."
James Prentice, a director at Winners Recruitment in Truro, said the wage increase would result in a cut to recruitment.
He said: "There's got to be a cut somewhere to accommodate the rise in a national minimum wage and that's what we're seeing.
"When the minimum wage goes up, the costs go up across the board because you have to pay for it somewhere."
'Virtuous circle'
Patrick Langmaid, who runs Mother Ivey's Bay holiday park near Padstow, Cornwall, said they had paid staff a real living wage since 2015.
The current rate is £13.45 an hour in Cornwall.
He said: "It's good for my team, they receive more money and it's good for my business because the team is really committed."
Langmaid said he found it easier to recruit and retain staff which led to higher customer satisfaction and repeat bookings.
He said it was a "virtuous circle of improvement".