Cornwall Group has raised its concerns about the impact of the increase in the National Minimum Wage and National Insurance with its Member of Parliament.
Announced in the Autumn budget from 1st April 2025 there will be: a 77p, or 6.7 per cent, increase to the NLW for those aged 21 and over (from £11.44 to £12.21 per hour) a £1.40, or 16.3 per cent, increase for those aged 18-20 (from £8.60 to £10.00 per hour) a £1.15, or 18 per cent, increase for those aged 16-17 and apprentices (from £6.40 to £7.55)
At the same time, NI rate will increase from 13.8% to 15%, something that according to Cornwall Group Chairman, Mark Mitchell, represents a double whammy for business at a time when salaries are going up.
“The increases will cost on average £2,000 per employee. With more than 360 colleagues in the business, you can do the maths and see that it’s adding around £750,000 a year to our operating costs. That is a big lump sum and a significant increase in overhead with only six months notice”, he said.
Mark continued: “What we really need to know is the plan for NMW over a five-year period so we can understand where we are all heading and plan accordingly. Setting rates six months before they become legally binding is simply not enough and continues to be a very damaging and disruptive factor in trying to plan and run a sustainable business.”
Cornwall Group raised its concerns about the impact of the increase with Labour MP for Truro and Falmouth, Jayne Kirkham earlier this month (JAN).
“She listened to and took a keen interest in what we had to say, however, I think it is highly unlikely that the Chancellor will back-pedal on its budget announcement”, Mark said.
“The other thing that very much concerns us is the high business rates that industry is facing – often more than the rents companies pay. That is not sustainable for the local, regional or national economy.”
Operating across three divisions, including two focussing on trade, Cornwall Glass Manufacturing and glass merchanting businesses, Mackenzie and Forward Glass; plus, Cornwall Glass & Glazing, operates across 15 sites, with an annual turnover of £25m and employing almost 360 colleagues.
Working across retail, trade, architectural and commercial sectors, it offers an extensive range of products and services including IGU manufacture, laminate and multi-laminate glass, acoustic glass, heat soaking and heat strengthening, water jet cutting, CNC working, sand-blasting, and decorative glass products.
Mark continued: “The industry is going through a very difficult period. We want to run a sustainable business, and that means investing.
“The point that we have made to our MP is that it is incredibly difficult to make decisions that are meaningful when you don’t get sufficient visibility of what is happening, and especially when the government just lumps things on employers with very little notice, it’s very disruptive.
“It is something which I am certain will with regret, catch many glass companies out come April and into the summer.”
For more information please call 01726 66325 email info@cornwallglass.co.uk or log on at www.cornwallglass.co.uk
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