Businesses and employees are set to benefit from a new council scheme offering reduced rates in return for a decent wage.

Harrow Council will reduce business rates for business owners if they agree to pay their staff the London Living Wage of £9.75 per hour.

It is the latest move in an attempt to support businesses and pubs who have been affected by the government’s decision to increase rates in London.

Harrow's business base is mainly small businesses employing fewer than five people and a quarter of Harrow residents are self-employed. 

A number of businesses already benefit from council-led schemes, with many paying no business rates at all due to their rateable value being under £12,000.

Some of those occupying premises with a rateable value between £12,001 and £99,999 are also eligible for a discretionary support scheme.

And for this financial year, a relief scheme for pubs with a rateable value below £100,000 means they will receive a £1,000 discount on their 2017/18 bill under the Pubs Business Rates liability.

Councillor Adam Swersky, responsible for finance and commercialisation at Harrow Council, said: “Harrow is open for business and especially for responsible businesses that pay their staff a decent wage.

“The measures we have announced will offer real, meaningful help to local firms hit by the government's 'London tax'.”