South Essex traders are concerned the new National Living Wage will badly affect their businesses.

The British Chambers of Commerce, in partnership with Middlesex University London, released its annual workforce survey on 1,400 businesses which looked at the implications for businesses under the changes.

The legislation includes the pensions auto-enrolment, the National Living Wage and the Apprenticeship Levy.

David Burch, director of policy at the Essex Chambers of Commerce, said their members fear the changes will bring down business growth.

“This is something our members have flagged to us. They have spoken to us about how the apprenticeship levies and especially business rates are impacting on them heavily.

“Unfortunately this forces businesses to make changes to adjust to the higher costs. So they either absorb the costs or increase prices of their services and products.

“Of course, not every business will follow this line but it’s something that could happen in the future if we continue to see increases of living wages.”

National Living Wage is set to increase to £8.75 per hour by 2020. The BCC’s survey found almost 40 per cent of respondents said they would raise prices of products and services.

Mr Burch added Essex Chambers of Commerce is working with BCC to take up the issues with ministers.

He said: “It’s a vicious cycle, and businesses can’t do anything about it. And they have to deal with high business rates too.”

Janet Hart, director of Cornwallis in Howard Chase, Basildon, told the Echo high business rates make it tough for her business. She said: “We hire out offices for companies and sometimes our office spaces are vacant for a while so there’s no business for us. And then we have to pay at least £62,000 a year. It’s a lot of money.”