Campaigners yesterday slammed the Scottish government's failure to make the living wage a prerequisite for public sector contracts.

Deputy First Minister Nicola Sturgeon said the new Procurement Reform Bill aimed to promote an approach that was "both business friendly and socially responsible."

Ms Sturgeon said: "Changes to public procurement rules will ensure Scotland retains its place as a world leader in public procurement reform."

But Scottish TUC deputy general secretary Dave Moxham said it was "a crushing disappointment to learn that the Scottish government's Procurement Reform Bill includes not a single reference to the living wage.

"Not only is the living wage absent from the body of the Bill, there's also no mention in the associated policy memorandum.

"Anyone looking at these papers would be completely unaware that the living wage has been and remains a key campaigning priority."

Peter Kelly of the Scottish Living Wage Campaign added: "The fact that the Scottish government now pays the living wage to all of its employees makes the decision to exclude the living wage from the Procurement Reform Bill all the more disappointing.

"If the political will and commitment are there, then a way could have been found to ensure that the living wage became part of procurement process."

"The public sector spends billions of pounds every year through procurement. This is a missed opportunity for the Scottish government to ensure that this money can help tackle the problem of low pay."

But the construction industry welcomed the the Bill.

Scottish Building Federation managing director Vaughan Hart said: "We have recently highlighted the spiralling cost to Scottish construction firms of participating in public tenders - now running to almost £100 million a year."

Ms Sturgeon said the plans would make it easier for the public sector to buy goods and services, would boost the economy and get people into work.