The government should offer extra support for hospitality businesses when the National Living Wage comes into effect, according to a new report from purchasing firm Beacon.
Managing director at Beacon, Paul Connelly, called on the government to help businesses through the upheaval, with many companies saying they may have to reduce their workforce, or pass on higher prices to consumers to absorb the cost, Beacon claimed.
Connelly said: "Beacon is urging the government to look again at supporting businesses in the hospitality industry, to help ease the widespread pressure that is being felt throughout the sector. One of our customers told us that its total bill for implementing the new wage would be £25,000 for 2016/17."
The company also said that it had already seen an increase of around 1.5% across food wholesale categories, and an increase of as much as 4% in linen costs, adding that businesses could face fines of up to £20,000 if they failed to comply with the new wage minimum.
Beacon works with over 160 suppliers across the hospitality, leisure, and care home markets. It is the latest body to highlight the significant impact the National Living Wage will have on the hospitality industry, including the British Hospitality Association and property advisor Christie & Co.
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