Small firms need help with living wage, FSB claims

The Federation of Small Businesses (FSB) says authorities should be "cautious" about introducing the living wage, as some small firms may struggle to afford it.

It comes as the Archbishop of York, John Sentamu, warned that spiralling living costs and stagnating wages are squeezing the lowest paid.

The FSB's Liesl Smith told BBC Radio 5 live's Wake Up to Money that although most small firms "want" to pay staff more, some were still struggling with the effects of the recession.