Brent’s Labour-run council will today become the first in the country to give discounted business rate to companies that pay the living wage.
Under this policy, if employers in the area pay all of their workers £9.15 (the London Living Wage) or more, they could save up to £5,000 on business rates.
30% of this will be paid by the council, while government policy means that central government will pay half and the Greater London Authority will pay the remaining 20%.
It’s forecast that 200 employers in Brent will sign up to this scheme.
Rachel Reeves, Shadow Work and Pensions Secretary, is visiting the area today and has praised the scheme as “a brilliant idea to tackle low pay which is good for everyone – workers, employers and taxpayers”.
It’s said the Labour leadership, who are committed to encouraging companies to pay the living wage, will urge councils across the country to adopt this policy. Labour-run council in Greenwich looks like it could be the next to do so.