The Federation of Small Businesses says that the UK’s small firms have been resilient, managing to absorb the initial costs of the new National Living Wage without cutting employment or passing on the costs to the consumer.

Responding to the release of Labour Market Statistics for May to July 2016, the FSB found the majority of small businesses (59%) absorbed the additional costs by lowering profits and making other efficiencies. It also claims that since the UK’s vote to leave the EU, businesses have decided to take a “business as usual” approach to hiring for the time being.