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The introduction of the compulsory national living wage, rising to £9 by 2020, is already taking a gamble.
Last week, the Resolution Foundation thinktank estimated that chancellor George Osborne's higher minimum wage, rising from £7.20 next April to £9 by 2020, would increase costs by less than 1% in most sectors, but hospitality could see an increase in its wage bill of 3.4%.
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Their average wage rose 7 cents, to $16.41 an hour.
For years, it has managed to win wage rises well above inflation for its members.
Wage rises there were the lowest in the European Union over the past decade.
Now he must find the cash to pay the wage rises he promised.
That can be useful: labour treaties sometimes restrain wage rises that employers cannot afford.
Wage rises should start to reverse that trend, boosting investment and workers' productivity.
The state minimum wage rose from $9 to $10 last January.
However, if the minimum wage rose to the $15/hr.
Wage rises during the reform were made up for by increases in industrial productivity.
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