Help firms to pay living wage, says Scottish Tories

BUSINESSES should be given taxpayers’ money or tax breaks to pay their workers a “living wage”, according to the Conservatives.

Murdo Fraser wants help for businesses to page living wages. Picture: PA

Firms that have started to see their profits rise again after a long period of stagnation should pass those profits on to low paid workers, while those still feeling the squeeze should be given a “living wage business bonus” by the Scottish Government, Tory enterprise spokesman Murdo Fraser said.

The SNP administration already pay public sector staff a “living wage” of £7.85 an hour - £1.35 more than the adult minimum wage - but the Conservatives say it should do more to help the private sector.

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Mr Fraser said: “It’s great to see company profits rising again after a long period where they have been fighting a head wind.

“Many workers have had to accept stagnant wages during those times so it would be great to see firms passing on those profits to low-paid staff.

“I applaud the many firms across Scotland that are already doing so. They are helping to reduce the welfare bill, which will help reduce the country’s debts more quickly.

“But the fact is that, in many cases, a sudden wage rise would only prevent many small and medium sized businesses from growing and hiring more people.

“So rather than hectoring business, we need to think of ways to make it more affordable for them to increase pay.

“The Scottish Government has been vocal in its support for the living wage campaign, while claiming there is nothing it can do beyond committing to paying it in the public sector.

“But there’s nothing stopping the Scottish Government from providing more incentives to businesses which could directly help the lowest paid in Scotland.

“The Scottish Conservatives are looking at the introduction of a Living Wage Business Bonus, which would extend the Small Business Bonus Scheme further to business that decide to pay a living wage, or agree to a phased-in timetable.

“This would be a policy aimed directly at small and medium-sized enterprises which often struggle the most with their costs.

“Another option under consideration is a Living Wage Discount Card which would entitle accredited living wage employers to a range of discounts on fees like alcohol licenses.

“We’ve had the debate in Scotland about where powers lie. Now it’s time for the Scottish Government to get on with using the powers it has already.”