If this is combined with the increase in corporation tax, how are businesses supposed to afford this, exactly?
I fully understand the minimum wage increase, but increasing the amount businesses have to pay for staff, while simultaneously increasing the tax rate by a substantial amount, is a double whammy that is virtually guaranteed to result in job cuts.
Increasing the minimum wage while reducing business taxes would be a smart move. It gives more money to the people while leaving businesses in a neutral or minor loss position. Increasing both, however, will result in businesses taking major cost-cutting operations.
It's also extremely likely that some businesses wouldn't be able to cope at all. Does this mean that part of the extra revenue gained by the government has to go towards propping up these businesses as well?
To me, there seems to be little point in taking people out of in-work benefits if it results in far more people entering out-of-work benefits due to restricted jobs.
Let's not fool ourselves here. If businesses feel under pressure and need to maintain their financial health to please shareholders, the first thing to face the axe will be the workforce. History shows that quite clearly.