Yesterday Brent council became the first local authority
in the country to pass a policy which will see businesses in the borough who
pay their staff a living wage receive discounts on their business rates of up
to £5000.
We know that it makes business sense to pay staff a living wage, living wage employers notice a significant drop in staff turnover, an increase in morale and productivity and enhancement of their brand recognition and reputation.
In Brent we are not attempting to build a business case for the living wage from scratch – that case already exists – but we are giving businesses one more reason to make the jump to becoming a living wage employer.
We want to make the transition to becoming a living wage employer as attractive and financially viable for local businesses as possible.
The key here is to approach the issue from a pro-business perspective.
We know that fundamentally, paying staff the living wage has to stack up financially for businesses, especially small and medium size enterprises.
Brent’s new business rate discount scheme for living wage employers forms the anchor of a wider package of incentives that the council will be putting on the table.
Yesterday I chaired a roundtable discussion with businesses, union representatives and the Living Wage Foundation to discuss what more we could collectively add to this package of incentives.
Some ideas included free advertising on the council’s website, assistance with press and publicity, pop up advertising space inside local banks, discount on council rooms for conferences and events and access to business mentoring opportunities, just to name a few.
Now that cabinet approval for the anchor initiative of the business rate discount has been obtained this package will be developed in consultation with local businesses and partners to be put in place by April to coincide with the discount coming into effect for the new financial year.
Every business in Brent will receive details about the rate discount and wider package of incentives with their business rate bill in April.
With the majority of people in poverty now in work, is more important than ever that councils examine how they can utilise their various powers to support businesses to pay the living wage.
Councils have powers in relation to planning and inward investment, procurement and supply chain opportunities, advertising and promotion, as well as some control over business rates.
We must examine how each of these levers of power can be tweaked in favour of maximising social value and addressing the root causes of poverty.
At the heart of this policy is the belief that businesses are part of the local community in which they operate.
Businesses must recognise their responsibility to the wider community and their role in helping to address some of the major problems faced by local people and the local economy.
In Brent we will continue to forge strong links with our businesses in order to work together to tackle in-work poverty across the borough.
We know that it makes business sense to pay staff a living wage, living wage employers notice a significant drop in staff turnover, an increase in morale and productivity and enhancement of their brand recognition and reputation.
In Brent we are not attempting to build a business case for the living wage from scratch – that case already exists – but we are giving businesses one more reason to make the jump to becoming a living wage employer.
We want to make the transition to becoming a living wage employer as attractive and financially viable for local businesses as possible.
The key here is to approach the issue from a pro-business perspective.
We know that fundamentally, paying staff the living wage has to stack up financially for businesses, especially small and medium size enterprises.
Brent’s new business rate discount scheme for living wage employers forms the anchor of a wider package of incentives that the council will be putting on the table.
Yesterday I chaired a roundtable discussion with businesses, union representatives and the Living Wage Foundation to discuss what more we could collectively add to this package of incentives.
Some ideas included free advertising on the council’s website, assistance with press and publicity, pop up advertising space inside local banks, discount on council rooms for conferences and events and access to business mentoring opportunities, just to name a few.
Now that cabinet approval for the anchor initiative of the business rate discount has been obtained this package will be developed in consultation with local businesses and partners to be put in place by April to coincide with the discount coming into effect for the new financial year.
Every business in Brent will receive details about the rate discount and wider package of incentives with their business rate bill in April.
With the majority of people in poverty now in work, is more important than ever that councils examine how they can utilise their various powers to support businesses to pay the living wage.
Councils have powers in relation to planning and inward investment, procurement and supply chain opportunities, advertising and promotion, as well as some control over business rates.
We must examine how each of these levers of power can be tweaked in favour of maximising social value and addressing the root causes of poverty.
At the heart of this policy is the belief that businesses are part of the local community in which they operate.
Businesses must recognise their responsibility to the wider community and their role in helping to address some of the major problems faced by local people and the local economy.
In Brent we will continue to forge strong links with our businesses in order to work together to tackle in-work poverty across the borough.
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