by business editor Trevor Sturgess

A rise in the national minimum wage has received a mixed reaction, with small firms calling it unwelcome.

The Government said the adult wage would rise by 12p (1.9%) to £6.31 an hour from October, while the rate for 18-20 year olds goes up 5p (1%) to £5.03. The rate for 16-17 year olds will increase by 4p (1%) to £3.72, with the apprentice rate edging up 3p to £2.68.

Roger House, chairman of the Federation of Small Businesses in Kent and Medway, said: “The increase in the national minimum wage is unwelcome in today’s economic climate.

"We understand the Government must strike a balance between boosting consumer spending and economic growth, however they must ensure small businesses in Kent and Medway stay competitive at a time when the economy remains fragile.

"There will be businesses that operate on thin margins, who will struggle with any increase to the minimum wage.”

The Forum of Private Business’ Alex Jackman added: “In the current business climate any additional cost is an unwelcome one.

"However, we appreciate that for the second year running the Government has implemented an increase in the National Minimum Wage that is below inflation, and for this restraint employers will no doubt be thankful.”

The Association of Convenience Stores, which has many Kent members, said it was “another blow to retailers struggling to meet increasing employment costs” and would result in reduced staffing hours and job creation.

But the CBI, the employers’ group, praised the Low Pay Commission for striking "a careful balance in setting the rates given sluggish growth, particularly in recommending a cautious approach to youth pay."

However, it was important that the minimum wage didn’t limit jobs by outstripping pay across the rest of the workforce.

The Chartered Institute of Personnel and Development (CIPD) welcomed the move, saying most employers supported the minimum wage and increasing it to boost the living standards of lower paid workers.

“This is particularly important given the Government’s efforts to reform the benefit system and incentivise work, especially for the long-term unemployed,” it said.

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