Your article on salaries underlines the case for Government contracts to only be awarded to firms paying a living wage (Loss of low-paid jobs behind "rising wages" figure for Scots workers, Business, December 2).

Research has shown the impact of a difficult climate of rising prices and increasing living costs is falling hardest on low-paid workers.

But a better deal for lower-paid workers would also benefit businesses and the economy. Independent research has found that making employees feel more valued improves morale, productivity and cuts absenteeism. There is no reason not to expect similar benefits in Scotland and elsewhere as the living wage becomes more established.

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Improving the pay of lower-paid workers would lead to higher spending across Scotland, helping businesses to grow. Meanwhile, spending less on tax credits for low-paid workers could free up funds to spend on services and help reduce Government debt.

Richard Nicol

Chief executive, Commsworld