NICOLA Sturgeon will today set out plans to grow Scotland's GDP and tackle inequality with social policies allied to economic growth.

At a conference in Glasgow on “inclusive growth”, the First Minister will focus on expanding free childcare and the Scottish Business Pledge.

Established in 2015, the pledge is open to firms paying the living wage of £8.45 an hour and meeting at least two other criteria, such as refusing to use zero-hour contracts, paying bills promptly and creating opportunities for young people.

Consultancy and engineering firm Dougal Baillie has become the 400th company to sign up .

Ms Sturgeon will say: "Scotland needs to use our vast potential to become a more productive economy. But we also need to become a fairer and more equal society.

“These two challenges are inter-connected. Our revised economic strategy and our Programme for Government has inclusive growth at its heart.

"What that means is key social policies - such as our expansion of childcare and our work to raise attainment in schools - have a significant economic impact.

"That is why we are focusing on fair work, encouraging employers to boost productivity by investing in their workplace and paying the living wage."

Scottish Labour said the pledge had been signed by just 0.2 per cent of Scottish firms, with 3.6 per cent of jobs, with no signatories at all in the “accommodation and retail” sector, and just a third of signatories committed to progress on diversity and gender balance.

MSP Jackie Baillie said: “Yet again with the SNP, there is no substance behind the spin. The Business Pledge is starting to look more like an exercise in PR than economic development.”