Labour would offer tax breaks to persuade the private sector to pay a living wage as a way to boost productivity and cut welfare bills, Ed Miliband will propose on Saturday.
The Labour leader suggests that firms could be offered either tax reliefs on training or capital investment, or lower business rates, in return for paying the living wage.
Doesn\’t that just upset the apple cart.
For all the numbers bandied about by the campaigners say that the point of a living wage is that taxes paid by the workers will rise, tax credits paid by the taxpayers will fall. The Living Wage is good for the government finances.
But if companies get the tax breaks to pay the Living Wage then those numbers don\’t add up, do they?