A NORTH London council yesterday became the first to offer tax breaks to businesses paying the living wage.

The London Borough of Brent approved plans to give employers up to £5,000 off their business rates if they comply.

The Labour council’s plan was welcomed by shadow work and pensions secretary Rachel Reeves.

“I want councils across the country to follow Brent’s lead by cutting business rates for companies who pay their staff a living wage,” she said.

“It’s a scandal that one in five people who does the right thing, works hard and contributes doesn’t earn enough to pay their bills.

“A Labour government will tackle low pay by raising the minimum wage to at least £8 an hour before 2020, bringing in Make Work Pay contracts to get more workers paid a living wage and banning exploitative zero-hours contracts.”