Not all staff paid living wage at Sarwar family's firm

SNP Westminster leader Stephen Flynn accused the Labour leader of "hypocrisy"

The politician plays no active role in the company set up by his father. He voluntarily waived his right to any dividend after becoming an MSP.

His minority shareholding in the firm was said to be worth £4.8m in 2017. He signed a discretionary trust deed at the time which means he cannot access the assets.

The beneficiaries are his three children.

At the time, he told BBC Scotland that he had received assurances from the company that it "wants to transition to a real living wage for all employees".

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Currently, the rate for the Scottish Living Wage is £12 per hour, 66p more than the minimum wage which is set at £11.44.

Speaking to the Sunday Show, Mr Sarwar said his party wanted to deliver “economic growth.”

He added: “We want people's incomes to go up and that's why a centrepiece of our election campaign will be our new deal for working people, which is about banning exploitative zero contracts, ending the scandal of fire rehire, and delivering a genuine living wage.”

Asked if his family's business was now paying all its staff at least the real living wage, he replied: “Well, they have a really good strong relationship with the USDAW trade union.”

“They will have to do what everyone will have to do which is comply with the new deal for working people that will deliver a genuine living wage, and they have a trade union recognition agreement with USDAW and a very strong relationship with USDAW.”

“It's not my business. I have no shares in that business. It's a business that yes, my family has an involvement in, but I have no direct involvement with that business.”

Asked if he did not know whether they pay all of the staff at least the real living wage or if he knew that they didn’t, he replied: “Well, I don't believe that every single staff member is on the real living wage.”

He added: “But I know there have been significant increases in the wage negotiated with USDAW trade union, and every business including that one will have to comply with a new deal for working people which will deliver a genuine living wage right across the country.”

During the interview, Mr Sarwar was asked more generally about the living wage and the reaction from business.

He said Labour had “been really upfront” over changes to workers rights.

“Of course, we were going to deliver economic stability, of course you want to partner with business, but actually we need to change the balance of rights for working people across the country.

“And therefore yes, we'll partner with business yes, we'll work with them, yes, we'll drive for change, but we also have to do the most transformative change in workers rights for a generation.”

Asked how much it was going to cost, he told the show: “Actually, if you talk to businesses, lots of businesses across the country, they too believe that this could have a net positive on their businesses because it helps drive up productivity, get more economic activity up, deliver for the workers and workers who aren't having to struggle to make ends meet.

“Right now, there's lots of workers across the country who are going to food banks because the pay packet doesn't pay to put food on the table.

“This will change that.”

He said it would not cost jobs.

The SNP's Westminster leader, Stephen Flynn accused the Labour leader of "hypocrisy" and described him as a "sleekit salesman."

He said: "Anas Sarwar isn't even the change the workers in his family's firm need - never mind Scotland.

"This Labour Party hypocrisy scandal shows why voting SNP is vital to protect workers' rights and put Scotland first.
"Hard working people across Scotland are struggling to make ends meet thanks to Westminster failure - and Anas Sarwar's family firm are doubling down on that struggle by refusing to pay a Real Living Wage.

"To make matters worse, Anas' household has been raking in profits of at least £40,000 a year from the business - that's well over the average annual income for a working Scot.

“The Labour Party has repeatedly watered down their commitments on workers’ rights and it’s no surprise given this astonishing revelation from their most senior figure in Scotland.

“Anas Sarwar is a sleekit salesman and when push comes to shove it really is less change, more chancer. Sarwar’s family firm shows exactly why we need SNP MPs who will always put Scotland and workers first.”

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The Scottish Tory chairman Craig Hoy said it had been a "car-crash interview for Anas Sarwar."

“The Scottish Labour leader was left in the humiliating position of saying his family firm would be forced by law to pay the real living wage, if his party won the election, because they refuse to do so voluntarily.

“It leaves Anas Sarwar open to the charge of hypocrisy – especially as the controversy over what staff are paid surfaced more than six months ago and it’s still not been resolved.”

Earlier, Shadow Chancellor Rachel Reeves ruled out increases to income tax or national insurance under a Labour government.

Speaking to BBC One’s Sunday With Laura Kuenssberg programme, Ms Reeves also said she did not want to make any cuts to public spending but was unable to give cast-iron guarantees.

She said: “But in the end we have to grow the economy, we have to turn around this dire economic performance.”

The shadow chancellor added: “I don’t want to make any cuts to public spending which is why we’ve announced the immediate injection of cash into public services.

“So that money for our NHS, the additional police – 13,000 additional police and community officers – and the 6,500 additional teachers in our schools, they are all fully costed and fully funded promises because unless things are fully costed and fully funded, frankly, you can’t believe they’re going to happen.”

After being pressed repeatedly on her tax plans, Ms Reeves said: “What I want and Keir wants is taxes on working people to be lower and we certainly won’t be increasing income tax or national insurance if we win at the election.”

She added: “We opposed the increases to national insurance when Rishi Sunak put those forward as chancellor.

“We would like taxes on working people to be lower but unlike the Conservatives, who have already racked up £64 billion of unfunded tax cuts in just three days of this campaign, I will never play fast and loose with the public finances, I will never put forward unfunded proposals.”