Business owners across Brighton and Hove are divided over a campaign for a living wage.

Brighton and Hove Chamber of Commerce will launch a two-year campaign for a living wage in August. It will appoint a campaign manager to run the operation, who will be paid £23,500 per annum pro rata for 21 hours per week.

Claire Ottewell, chairwoman of the Tourism Alliance, which represents hoteliers, restaurateurs and attraction operators in the city, said she has grave concerns over the living wage. She said: “Somehow it seems to be largely ignored that the city's economy is dependent on a thriving tourism economy.

“Without this would so many people want to live here, students wish to study here and conferences take place here? The chamber is largely comprised of sole traders who will not be affected by the living wage. The economics simply do not stack up to make this a viable reality. For one of my medium sized members the introduction would mean a hike of more than £100,000 per annum in wages.

“I am not sure those signed up have done the maths. For the average micro business employing ten people the wage bill is going to increase about £20,000 per annum. Can businesses really afford this in this climate?”

Roger Marlowe, owner of Paskins Hotel in Charlotte Street, said increasing wage costs in the city could lead to staff being laid off.

He said: “The alarming thought of an individual city promoting an inflated wage is that it is easily paid by the public services and the larger companies whose wage bills are mainly for better qualified and paid employees. “The adoption of higher minimum wages may well create a shortage of labour amongst those more marginal businesses employing lots of unqualified staff.”

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This meeting was generated by MP Caroline Lucas from her July 2011 consultation with the TA, where the concern was raised that the associated costs of preserving a listed property were prohibitive to running a success business. Thus putting the future of the City's key tourism attractions, which has more grade one listed buildings than anywhere else in the South.

The Brighton & Hove Tourism Alliance are committed to supporting the following issues in 2012:

• Clean Streets
• More Public Toilets
• Removal of Automatic Service Charge (NB. When not possible as is the case with Giraffe, making it clear the customer does not have to give a tip)
• Easy entry and exits to the City