SMALL businesses in Farnham are feeling the pinch after the National Living Wage increased to £7.50 on April 1.

More than two million employees across the UK are expected to benefit from the 30p increase for everyone over 24.

However, as reported on this week’s Herald business page, the Federation for Small Businesses has warned increasing numbers of small business-owners are not paying themselves or stopping their own pension contributions to meet these new employment costs.

Speaking about the FSB’s claim, Richie Ellmer, president of Farnham Chamber of Commerce, said: “While I have no direct reports from members to prove or disprove this claim, it would come as no surprise if business owners are meeting the increase in the minimum wage from their own pocket.

“I suspect that it will also be a similar case for the new pension regulations and any increase in business rates.

“If a business owner is already operating on tight margins, it is highly likely that they will not be able to afford to pay themselves at the rate they may have become used to receiving.”