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Daily Record
Daily Record
Politics
Torcuil Crichton

Scots Labour leader Richard Leonard backs bid to starve rogue bosses of Covid aid

Scottish Labour leader Richard Leonard is backing a move to starve rogue employers of coronavirus financial aid.

The MSP has launched a campaign with former shadow chancellor John McDonnell to punish those who abuse workers through zero-hour contracts, avoid tax and pollute the environment.

In his first Commons intervention since returning to the back benches, McDonnell will present a Bill at Westminster on Wednesday to set up a Good Business Commission.

Leonard, who will lodge a motion at Holyrood to promote the Bill, said: “For too long big firms with the deepest pockets have used loopholes to avoid paying their fair share of taxes while paying their workers poverty wages, all while drawing on public money."

Former Shadow Chancellor John McDonnell is demanding that 'fire and rehire' firms are banned from receiving government support (Owen Humphreys/PA Wire)

He added: "While this legislation is reserved to Westminster, as ­Scottish Labour leader I will not stand by and allow these practices to continue.”

Firms that use fire and rehire tactics and zero-hour contracts, avoid tax and pollute the ­environment would be targeted in McDonnell’s Business Standards Bill.

Firms such as Amazon, Google and Apple would face sanctions for shifting profits to allow them to pay tax in ­countries with lower rates.

A commission including business, trade unions, environmental groups and tax justice campaigners would oversee the scheme with power to impose tough sanctions.

Firms would have to pay the real living wage of £9.30 an hour, promote gender pay parity and target net zero emissions.

McDonnell said: “Billions of pounds of taxpayers’ money is being paid to companies to help them get through the pandemic, so it is not much to ask that these companies to treat their employees decently, not harm our environment and pay their fair share in taxes.”

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