News2 mins ago
Pharmacies Closing
The rise in the minimum wage and the additional cost of employers National Insurance contributions means closure for many pharmacies. The chairman of Numark Pharmacies which has 5500 outlets says that since 90 percent of business is NHS based, prices can't be increased and therefore the extra costs can't be recovered.
Another snag this hapless, hopeless government missed.
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Maybe go and have a cuppa then, or accept that the big boys have put the little boys out of business like all the other little boys. The small town is now completely dead including the chemist. Nothing to do with labour. In any case most, if not all small chemists employed a stay at home mum, one for a couple of hours in the morning, and a different mum in the afternoon for another couple of hours. Cash in hand more than likely. <:•)
"In any case most, if not all small chemists employed a stay at home mum, one for a couple of hours in the morning, and a different mum in the afternoon for another couple of hours."
Unlss they were paid cash in hand (in which case, obviously, all bets are off) employing two people will see a bigger increase. Employing one, earning £22,000 pa will cost them £2,550 (an increase of £770 over the current arangements). Employing two each earning £11,000pa will cost them £1,800 (an increase of £1,275).
But, that aside, do you not accept that considerably increasing employers' NI is hardly likely to help those who are just on the edge to survive?
All of what you said about pharmacies may or may not be true, but if you considerably increase the cost of employing people (in any business) the employers will do one of four things:
(a) increase their prices,
(b) decrease their employees' pay (or at least not increase it by so much)
(c) employ fewer people or
(d) close the business.
For pharmacies:
(a) is largely out of the window for the reasons discussed;
(b) is hardly feasible because if they are paying minimum wage they cannot reduce pay and in any case, they need to pay decent wages to retain their staff - with staff recruitment and retention an already recognised problem.
(c) is probably impractical as there has to be minimum staffing levels to run the place effectively.
Which just leaves leaves (d).
Whatever way you cut this, the considerable increase in the cost of employing people will lead to either increased prices (thus stoking inflation and interest rates); decreased pay (with staff disenchantment and probably businesses and their customers effected by staff shortages); decreased staff numbers (ditto); or businesses closing (when not only will the additional revenue not be forthcoming, but the original amount will be lost as well).
It is well known that an increase in taxes rarely produces the increased revenue that it is supposed to. Individuals and businesses don't like paying tax so - businesses in particular - will take steps to avoid it. The above explanation shows exactly why.
Can I do anything else to help you understand this?
