With the aim of ensuring that £10billion of public sector spend on contracts is spent “in a way that delivers economic growth, advantages and benefits for our businesses and social benefits”, the Scottish Government passed the Procurement Reform (Scotland) Bill with a unanimous vote.

However, members of the Scottish Parliament (MSPs) voted against living wage amendments to be added to the bill despite the Scottish Labour party calling for action. Provisions that were previously announced relating to the living wage will still be retained.

Scottish Labour MSP James Kelly argued that by making the living wage mandatory within public sector contracts, it would make a “massive difference” to the 400,000 people on lower wages. The current living wage is £7.65 per hour, £1.34 higher than the national minimum wage. However, following on from previous comments, Deputy first minister Nicola Sturgeon said making the living wage mandatory within public sector contracts would breach EU procurement law.

Sturgeon commented that “We have done a difficult job well. We have provided a framework for public procurement that allows us to develop the guidance and the regulations that will give effect to the economic and social objectives that many people – rightly – want public procurement to deliver.” She went on to say “We are determined to clamp down on tax avoidance, blacklisting and the inappropriate use of zero-hours contracts and to do everything that we can to promote and further the living wage.”

The bill will be submitted for Royal Assent once it has been scrutinised by the advocate general, the attorney general or by the secretary of state for Scotland.