WORCESTER businesses will be hit hard by the Government's latest high profile announcements on maternity leave, claim bosses.

Plans to extend paid leave for new parents to nine months will affect most local firms, the majority of which are small or medium sized.

"As a small firm, we have tight margins anyway and will be hit by the new maternity rules," said Colin Anstey, the owner of cheese company Ansteys of Worcester.

"We haven't got the people to juggle around when someone goes on maternity leave and would have to cope with the expense of bringing someone else in."

Vanessa Rice, the buyer for St Peter's Garden Centre, agreed extra parental leave, which is being changed so fathers can also take more time off, could be damaging.

"We don't always have the option of replacing people when they go on parental leave," she said.

"This, in turn, puts more pressure on the other staff, although we do our best to keep our workers happy."

Chris Harvey, head of policy and representation at the Chamber of Commerce Herefordshire and Worcestershire said the Government should "think how this policy will work on the ground."

He also raised the issue of the increase in the minimum wage, which did not affect any of the businesses questioned.

"If more employees want to take more paid leave, this may have a devastating effect on businesses and on their ability to compete," he said.

"The extra payments may be covered by the Government's scheme but businesses still have to bear the cost of advertising for maternity cover and training costs.

"There is also the issue of the minimum wage.

"It is not that there is a widespread wish among employers to pay low wages, but the rises the Government have been putting on the minimum wage are significantly above the level of inflation.

"This sends out a mixed message and many people may feel that they can press their employer for a similar percentage increase in their own wages which is unsustainable."