Economy can handle London living wage, says Johnson
06-08-2008
London mayor Boris Johnson has said that increasing wages from the minimum to the London living wage will not affect the economy, it has emerged.
Despite worries that raising wages could spell disaster in current bleak economic climate, Mr Johnson has insisted that paying the London living wage would not cause instability.
Speaking to Personnel Today, he said: "We have looked into this and we don't believe there would be much inflationary impact whatsoever. Businesses might actually find it cost-effective in making staff happier and more productive, and reducing staff turnover."
However, a recent poll by the London Chamber of Commerce and Industry found that 42 per cent of 275 employers asked said they would have to cut jobs if they made the change.
The London living wage, which pays 35 per cent more than the minimum wage, was raised from £7.20 to £7.45 last month.
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