The Federation of Small Businesses (FSB) has insisted that its members want to pay their employees a higher salary, but argued that they are "struggling" with cash flow in the current economic climate.
Companies are under pressure to pay staff the Living Wage - which was increased today to £8.55 in London and £7.45 elsewhere - following campaigning by London mayor Boris Johnson and Labour leader Ed Miliband.
Small firms want to pay their employees more, and recognise the benefits of doing so. However, they are struggling to manage cash-flow in the midst of weak economic demand and increasing energy and fuel costs.
More top news
Rain in the north tonight. Mostly dry, mild and humid elsewhere.
Wayne Lotter was co-founder and president of the PAMS Foundation, which was credited with helping to arrest thousands of poachers.
The star celebrates beating Justin Bieber into second place as her song becomes a hit again after a performance at the total solar eclipse.