John McDonnell urges kitemark for businesses paying living wage

Firms that pay employees the living wage and pay taxes "transparently and properly" should be given a "kitemark" to mark them out from less-scrupulous rivals, John McDonnell will say.

The shadow chancellor will use a speech to the London Chambers of Commerce to hit out at those who "duck their responsibilities" to workers and the public purse.

"We've allowed a small minority to duck their responsibilities to society, undercutting wages and undermining the public purse," he will say.

"The rest of us lose out from the actions of a few. We think decent businesses should be recognised.

"So Labour would introduce a 'Good Business' kitemark scheme. Those businesses who pay their taxes transparently and properly, and who pay their employees at least the living wage, deserve proper, public recognition.

"It'll be open to any business that wants to apply. We'll make sure that the strivers are properly and publicly recognised."

He will say: "Real wealth creation isn't about some desperate war of all against all.

"I'm a socialist. But my socialism has always meant all of us pulling together. What we achieve by working together is always going to be more than what we achieve separately.

"Working together means recognising contributions when they are made. It means recognising the hard work and effort our decent businesses make. When people are paid fairly, and taxes paid properly

"We know a small number fail the rest of us. The tax dodgers, wriggling out of making the fair contribution the rest of us make.

"The under-payers, ducking their responsibilities to their own employees and failing to pay a wage anyone can live on.

"It's an attitude that's fine for some. But the decent businesses who make the effort lose out."