Three quarters of smaller companies 'not planning wage hikes'

Almost three quarters of small and medium sized businesses have said they will be leaving pay rates unchanged in 2015.

The ISME survey results follow a study by employers body IBEC which found 57% of companies are planning pay rises averaging 2% this year.

ISME, which represents smaller companies, says 71% of businesses it surveyed will not be changing wage rates in coming months.

The 26% who do anticipate wage increases expect them to be just over 1%, while 2% of SMEs say they will be force to slightly reduce pay rates.