Small firms will welcome the news that the government plans to ban restaurants from using tips to make up the minimum wage, according to one industry body.
A survey by the Federation of Small Businesses (FSB) found that 99 per cent of members do not engage in the practice and 85 per cent would welcome any change in the law.
John Wright, FSB National Chairman, explained that members such an amendment will have a positive impact on their firm and are keen to create a level playing field for firms.
He said: "Big businesses have been using this loophole to keep costs down.
"It creates an unfair playing field and means small companies, who pay their staff a decent hourly rate and let them keep tips on top, simply cannot compete."
New legislation should help create equilibrium, he added.
Last week, the FSB warned that larger firms are exploiting SMEs by imposing unfair payment terms on them.
