Labour is the only party that can be trusted to strengthen the minimum wage

The Tories and the Lib Dems' past opposition to the minimum wage shows why we should be sceptical of their warms words on low pay.

One of the questions I like to ask when I'm interviewing candidates to work in my office is what they think is Labour's greatest achievement. The answer I most often get is the National Minimum Wage.
 
We are right to be proud of it. When Labour introduced the minimum wage in 1999, it made an immediate difference to workers on the lowest pay. Women in particular benefited. And thousands of decent employers all over the country were pleased too; it tackled exploitative and unscrupulous competitors using low pay to undercut costs.

It's easy to forget, now that all the main political parties claim to support it, just how bold and radical the introduction of the minimum wage was. But when it was introduced by Labour, the Tories were outright opposed. They said that it would cripple business, and would destroy thousands of jobs.
Of course, that simply wasn't the case. Our careful approach when in government, working in partnership with employers and employees, maintaining the right balance between wage growth and the impact on employment, ensured its success.

The Lib Dems, too, are Jonny-come-lately's to the value of the minimum wage. In 2003, Vince Cable said increases in its level set "a dangerous precedent". So why would we believe his warm words about it last week? But perhaps the most convincing proof of the Cameron government's lack of enthusiasm is that the real value of the minimum wage has declined by 5% since 2010.

Labour is the only party with a track record of bold action on low pay, the only party that can be trusted to boost and strengthen the minimum wage. And it's action that is desperately needed. In 38 out of the 39 months that David Cameron's been in Downing Street, average wages have fallen; people are on average £1,500 worse off. Low pay is contributing to the crisis in living standards facing Britain.

So, building on the successful approach we used in government, Ed's commitment today is that Labour will strengthen the minimum wage. Fair pay is central to Ed's vision of a different kind of economy, one in which both workers and business play their part. The only way we're going to build a strong economy is to make sure it works for working people. That means competing on high skill, high wage jobs.

The minimum wage needs to rise faster than it has in recent years so that it catches up to where it was in 2010. There is also evidence that the minimum wage puts very little pressure on employers in sectors that could afford to pay more. Analysis by IPPR and the Resolution Foundation has shown that increasing the minimum wage to the level of the living wage would cost large employers in sectors like finance, construction and computing less than one half of one per cent of their total wage bill. Around one million workers would see their pay rise.

Of course, it's right that we work closely with business to ensure we get the detail right. I'm pleased that Alan Buckle, Deputy Chair of KPMG International, has agreed to lead a review to look at how to strengthen the powers of the Low Pay Commission. We must also have effective enforcement - that is why Labour has committed to increasing the fines for non-payment of the minimum wage and to giving local authorities a role in enforcement alongside HMRC.

We're right to take pride that it was a Labour government that introduced the minimum wage. We are right to be proud of the difference it's made. The next Labour government will strengthen the minimum wage.

I'm proud Ed has promised today that we will take action. It is Labour policies that will tackle the low pay that is driving the cost of living crisis and holding back growth.

 
Kate Green is Labour MP for Stretford and Umston and shadow equalities minister
 
The real-terms value of the minimum wage has declined by 5% since 2010. Photograph: Getty Images.

Kate Green is Labour MP for Stretford and Umston and shadow minister for women and equalities.

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An unmatched font of knowledge

Edinburgh’s global reputation as a knowledge economy is rooted in the performance and international outlook of its four universities.

As sociologist-turned US Senator Daniel Patrick Moynihan recognised when asked how to create a world-class city, a strong academic offering is pivotal to any forward-looking, ambitious city. “Build a university,” he said, “and wait 200 years.” He recognised the long-term return such an investment can deliver; how a renowned academic institution can help attract the world. However, in today’s increasingly globalised higher education sector, world-class universities no longer rely on the world coming to come to them – their outlook is increasingly international.

Boasting four world-class universities, Edinburgh not only attracts and retains students from around the world, but also increasingly exports its own distinctively Scottish brand of academic excellence. In fact, 53.9% of the city’s working age population is educated to degree level.

In the most recent QS World University Rankings, the University of Edinburgh was named as the 21st best university in the world, reflecting its reputation for research and teaching. It’s a fact reflected in the latest UK Research Exercise Framework (REF), conducted in 2014, which judged 96% of its academic departments to be producing world-leading research.

Innovation engine

Measured across the UK, annual Gross Value Added (GVA) by University of Edinburgh start-ups contributes more than £164m to the UK economy. In fact, of 262 companies to emerge from the university since the 1960s, 81% remain active today, employing more than 2,700 staff globally. That performance places the University of Edinburgh ahead of institutions such as MIT in terms of the number of start-ups it generates; an innovation hothouse that underlines why one in four graduates remain in Edinburgh and why blue chip brands such as Amazon, IBM and Microsoft all have R&D facilities in the city.

One such spin out making its mark is PureLiFi, founded by Professor Harald Haas to commercialise his groundbreaking research on data transmission using the visible light spectrum. With data transfer speeds 10,000 times faster than radio waves, LiFi not only enables bandwidths of 1 Gigabit/sec but is also far more secure.

Edinburgh’s universities play a pivotal role in the local economy. Through its core operations, knowledge transfer activities and world-class research the University generated £4.9bn in GVA and 44,500 jobs globally, when accounting for international alumni.

With £1.4bn earmarked for estate development over the next 10 years, the University of Edinburgh remains the city’s largest property developer. Its extensive programme of investment includes the soon-to-open Higgs Centre for Innovation. A partnership with the UK Astronomy Technology Centre, the new centre will open next year and will supply business incubation support for potential big data and space technology applications, enabling start-ups to realise the commercial potential of applied research in subjects such as particle physics.

It’s a story of innovation that is mirrored across Edinburgh’s academic landscape. Each university has carved its own areas of academic excellence and research expertise, such as the University of Edinburgh’s renowned School of Informatics, ranked among the world’s elite institutions for Computer Science. 

The future of energy

Research conducted into the economic impact of Heriot-Watt University demonstrated that it generates £278m in annual GVA for the Scottish economy and directly supports more than 6,000 jobs.

Set in 380-acres of picturesque parkland, Heriot-Watt University incorporates the Edinburgh Research Park, the first science park of its kind in the UK and now home to more than 40 companies.

Consistently ranked in the top 25% of UK universities, Heriot-Watt University enjoys an increasingly international reputation underpinned by a strong track record in research. 82% of the institution’s research is considered world-class (REF) – a fact reflected in a record breaking year for the university, attracting £40.6m in research funding in 2015. With an expanding campus in Dubai and last year’s opening of a £35m campus in Malaysia, Heriot-Watt is now among the UK’s top five universities in terms of international presence and numbers of international students.

"In 2015, Heriot-Watt University was ranked 34th overall in the QS ‘Top 50 under 50’ world rankings." 

Its established strengths in industry-related research will be further boosted with the imminent opening of the £20m Lyell Centre. It will become the Scottish headquarters of the British Geological Survey, and research will focus on global issues such as energy supply, environmental impact and climate change. As well as providing laboratory facilities, the new centre will feature a 50,000 litre climate change research aquarium, the UK Natural Environment Research Council Centre for Doctoral Training (CDT) in Oil and Gas, and the Shell Centre for Exploration Geoscience.

International appeal

An increasingly global outlook, supported by a bold international strategy, is helping to drive Edinburgh Napier University’s growth. The university now has more than 4,500 students studying its overseas programmes, through partnerships with institutions in Hong Kong, Singapore, China, Sri Lanka and India.

Edinburgh Napier has been present in Hong Kong for more than 20 years and its impact grows year-on-year. Already the UK’s largest higher education provider in the territory, more than 1,500 students graduated in 2015 alone.

In terms of world-leading research, Edinburgh Napier continues to make its mark, with the REF judging 54% of its research to be either world-class or internationally excellent in 2014. The assessment singled out particular strengths in Earth Systems and Environmental Sciences, where it was rated the top UK modern university for research impact. Taking into account research, knowledge exchange, as well as student and staff spending, Edinburgh Napier University generates in excess of £201.9m GVA and supports 2,897 jobs in the city economy.

On the south-east side of Edinburgh, Queen Margaret University is Scotland’s first university to have an on-campus Business Gateway, highlighting the emphasis placed on business creation and innovation.

QMU moved up 49 places overall in the 2014 REF, taking it to 80th place in The Times’ rankings for research excellence in the UK. The Framework scored 58% of Queen Margaret’s research as either world-leading or internationally excellent, especially in relation to Speech and Language Sciences, where the University is ranked 2nd in the UK.

In terms of its international appeal, one in five of Queen Margaret’s students now comes from outside the EU, and it is also expanding its overseas programme offer, which already sees courses delivered in Greece, India, Nepal, Saudi Arabia and Singapore.

With 820 years of collective academic excellence to export to the world, Edinburgh enjoys a truly privileged position in the evolving story of academic globalisation and the commercialisation of world-class research and innovation. If he were still around today, Senator Moynihan would no doubt agree – a world-class city indeed.

For further information www.investinedinburgh.com