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Rachel Reeves MP, Labour’s Shadow Chief Secretary to the Treasury, commenting on research by KPMG on the living wage and the letter from sixty academics in The Times today warning on Osborne’s proposals to end national pay bargaining, said:

"Today's report from KPMG shows the work that government, businesses, employees and civil society need to do together to build a real One Nation economy, in which everyone has a stake and prosperity is fairly shared. As KPMG's analysis highlights, paying workers enough to keep their families out of poverty and out of debt can provide the foundation for more productive businesses and a stronger and better balanced economy. That's why Labour councils are leading the way in paying a living wage to their employees, and encouraging local businesses to do the same.

"But the Tories are going in the opposite direction, with provocative proposals for regional and local pay that would divide north against south, public sector against private, dedicated care workers against struggling small businesses. As sixty academics writing to The Times argue today, ploughing on with this plan will prove economically damaging and socially divisive - yet another demonstration that the Tories cannot deliver the change that Britain needs."

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