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When the lowest-paid workers get a pay rise, the money hardly ever remains unused. It is spent on groceries, transport, childcare and every day essentials, much of it at local, small businesses and services up and down the country. In other words, higher wages flow directly through local economies and support many small and micro businesses. The national living wage thus boosts demand in high streets and communities where micro-businesses are based, supporting both workers’ living standards and the vibrancy of the local economy.