Small businesses may stop recruitment after National Living Wage introduction

Small businesses are expecting that they will reduce their recruitment when the National Living Wage is introduced next year, according to a new survey.

The Federation of Small Businesses (FSB) has surveyed 1,261 of its members. It found that 38% of small businesses expect that the National Living Wage will have a negative impact on their companies.

52% said that they would put off taking on new recruits when the National Living Wage comes into force in April 2016.

The National Living Wage will start at £7.20 for employees over 25-years old, rising to £9 by 2020.