Tom Gordon
SMALL businesses paying low wages should be subsidized by taxpayers to page the living wage instead, the Scottish Tories said yesterday.
Enterprise spokesman Murdo Fraser urged the SNP government to "nudge" Scots firms to pay their workers £7.85 an hour, the rate which should ensure a basic but decent standard of living.
Brent Council in London recently announced plans to become the first in Britain to offer business rate discounts to firms paying the living wage.
Fraser said another option would be giving firms a "living wage discount card", entitling them to discounts on state fees such as alcohol licences.
He said a forced wage rise could stop some firms hiring new staff, so incentives were better.
He said: "Rather than hectoring business, we need to think of ways to make it more affordable for them to increase pay.
"There's nothing stopping the Scottish Government from providing incentives to businesses which could directly help the lowest paid in Scotland."
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