THE minimum wage could spell problems for smaller East Lancashire firms if it is set too high, a pressure group today warned.

The North West-based Forum of Private Business joined forces with care home owners in the region to voice their fears to the low pay commission. And the forum warned that the minimum wage could backfire on employees because businesses might shed jobs or put off recruitment.

"The higher the minimum wage is set the more impact it has for those at the lower level of pay," said Nick Goulding, FPB head of policy.

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