Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what assessment his Department has made of the potential impact of recent increases in the National Living Wage on the financial sustainability of small businesses in (a) hospitality, (b) retail and (c) other sectors.

The Government considers the expert and independent advice of the Low Pay Commission (LPC) when setting the National Minimum Wage and National Living Wage rates. Each year, the Government’s remit to the LPC asks it to take into account the impact on businesses, including small businesses, as well as the wider economy. To inform its recommendations, the LPC undertakes extensive consultation, research and data analysis.

The Government has published an Impact Assessment for the 2025 rates, which sets out the potential impacts on small businesses and the range of mitigations and policy measures in place to support them.