The Federation of Independent Retailers (Fed) has raised concerns about the increase to the minimum wage in yesterday’s Budget. 

During her address to the Commons, chancellor Rachel Reeves announced the minimum wage would be increasing for 18–20-year-olds from £10 to £10.85 per hour. At the same time, the living wage will rise from £12.21 to £12.71. 

The Fed said the raise will harm small businesses. The body’s national president, Hetal Patel, said: “We called for any increases to be kept in line with inflation. Unfortunately, higher wage bills will lead to more staff having their hours cut or even losing their jobs, with retailers having to take on even more hours themselves.” 

Offering a silver lining, Patel said he was pleased to hear the chancellor’s promise of cracking down on trading illegal goods. 

Yesterday, Reeves said: “HMRC and the Fair Work Agency will crack down on the illicit businesses that blight our high streets and undercut legitimate firms.” 

Patel commented: “I wrote to the chancellor personally regarding this issue immediately before the Budget, so it is pleasing to see action being promised.” 

The Fed is not alone in criticising the changes to the minimum and living wage. Yesterday, Miles Beale, CEO of the WSTA, also spoke out about the issue. 

In a statement on the Budget, Beale said it is no surprise that wine and spirits producers, as well as the hospitality sector, “feel under sustained attack”. 

In advance of the Budget, the Society of Independent Brewers and Associates likewise spoke against raising wages. 

It said: “Cost of living pressures are very real for people and we all want to see living standards rise. However, the responsibility of delivering wage increases is most felt by small businesses, including small independent breweries who are already facing significant pressures. 

“We have lost more than 100 breweries in the past year and more tell us they are on the edge. If they close, there won’t be any jobs at all.”