Raising the minimum wage will be a "bitter blow" for independent businesses and will lead to job losses, an employers association has warned.

The Federation of Independent Retailers (NFRN), which represents 11,000 small businesses nationwide, said raising the wage from £8.91 to £9.50 will heap even more pressure on them.

NFRN national president Narinder Randhawa said: “We would all like to pay our staff more, but the headline increase in the wage rate does not include the increase in National Insurance and pension contributions that employers also have to pay.

“Given that many of the items on sale in our 11,000 members’ stores – particularly newspapers and magazines – are price marked, retailers are unable to increase their prices to cover these additional payrolls costs."

Mr Randhawa said Covid has already forced businesses to reduce staff and hours and this latest move will only worsen the problem.

“At a time when small businesses need help and support more than ever this move by the government feels like a kick in the teeth for those that are already struggling to survive,” he added.

However, the public response to a Watford Observer social media post was mostly unsympathetic with the majority claiming workers should be paid a decent wage.

Among them was Stuart Neilson, who wrote: "If you can't pay your staff a wage they can live on then you simply don't have a viable business."

Watford BID’s chief executive Maria Manion said independents face a challenging few months and this announcement will put more pressure on them.

She continued: “The key for business success is the continued support of their local community and its residents. 

"This is essential for the survival of our independents and we would urge local residents to continue their support of our local businesses.”

Elected Mayor of Watford Peter Taylor said: “It is important that everyone gets a decent wage for the work they do.

“While I welcome this increase in the national minimum wage, let’s not forget that the government has also increased national insurance.

“That breaks their election promise and will hit people on low incomes and businesses, just as they are doing all they can to recover from Covid.”

Watford MP Dean Russell has been contacted for comment.