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    Who pays the subsidy?

    As I have said on my blog, the living wage campaign is bonkers and will just lose jobs. Subsidy is a route that always fails because you are just recycling money inefficiently.

    Better to increase the nil rate band of tax as I explained. Why on earth should anyone pay tax at the level of the minimum wage? Raise the tax and NI threshold and you get your 'living wage' without extra costs to an employer, no loss of jobs and no subsidy - it will spur on growth too.

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