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GMB call on London councils to implement London Living Wage business rate discount scheme

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GMB call on London councils to follow lead of Brent Council in developing rate incentives for businesses to start paying London Living Wage

Employers must be prepared to pay much higher wages to staff to enable them to afford London’s high rents, says GMB London

GMB, have called on all London boroughs to follow the lead of Brent Council, by developing a scheme that offers business rate discounts as an incentive to pay the London Living Wage of £10.20.

In 2015 Brent Council cabinet approved to offer firms in the borough up to £5,000 off their business rates if they paid employees the London Living Wage. The agreement saw London's lowest-paid workers in the borough receive pay rises of around £2.50 an hour, as it was estimated that around 30% of Brent residents were earning less than the London Living Wage.

Since 2015, Lewisham, Ealing and Greenwich councils have also taken up the scheme.

Warren Kenny, GMB Regional Secretary said:

“The London Living Wage reflects the real cost of living in London, and rewards the city’s residents for a hard day’s work, with a fair day’s pay.

“High rents in London are here to stay. So too are younger workers living for longer in private sector rental accommodation.

“As a direct consequence, employers must be prepared to pay much higher wages to staff to enable them to afford London’s high rents.

 “If employers don't respond with higher pay they will face staff shortages as workers, especially younger people, are priced out of housing market.

“Earlier this year ONS projected London's population growing to nearly 11 million by 2040. To make up for the current shortage of homes for rent at reasonable rents and to house this growing population is one of the most pressing challenges facing London. Higher pay especially for younger workers is now one essential part of the solution."

“We commend the work being done in Brent, Lewisham, Ealing and Greenwich, but feel this scheme of offering business rate discounts as an incentive to pay London Living Wage should be used all across London.”

ENDS

Contact: Vaughan West 07967 342 197 or GMB London Press Office 07970 114 762