r/tories • u/Interesting_Pen_4499 • 3h ago
Minimum wage rising to £27.4k per year (!)
Not only does this have all the obvious first order effects, like pay compression and inflationary pressure (think supermarkets, with high labour costs and 2% profit margins), but there is also another, in my opinion even more damaging, second order effect:
Think about what will happen to the marginal worker who would 'only' be worth £25k a year to a business (if on full time hours). They now won't get hired at all, and will go from paying ~£2.4k in income tax per year, to needing to claim benefits, possibly in the tens of thousands (depending on if they become eligible for social housing and any other benefit-related perks).
This is just complete madness. All because Labour wants to appease its short-sighted voters who think Econ 101 is some 'neoliberal' conspiracy theory. They also seem to believe that, if there are 10 employees (on minimum wage) and 1 business owner, the former are automatically more righteous by dint of being more numerous (aka tyranny of the majority).
P.S. I know this isn't related, but I'm always going to bang this drum: if you live in a Labour-Reform battleground, please think very carefully about who to vote for.

