Government to boost employee-ownership schemes

The Government wants to see an increase in the number of employee-owned firms in Britain and has announced plans aimed at making this a reality.

The Minister for Employment Relations, Jo Swinson, has revealed proposals which focus on making the model of employee-ownership more widely understood and easier for businesses to implement. The plans follow on from an independent review by Graeme Nuttall, which recommended a variety of measures to boost the number of employee-owned firms and Deputy Prime Minister Nick Clegg is a supporter of the plans.

“Businesses that are owned by their employees produce more, grow faster, keep their workforce happier, and pay staff more fairly,” he said. “Graeme’s report makes clear that sharing ownership means sharing success.”

The proposals look at issues like tax guidance, whether to form an independent Institute for Employee Ownership, and the possibility of an ‘off the shelf’ model for establishing an employee-owned business.

IBB’s Employment Team provides advice on the employment aspects of all major business decisions. To contact a member of the team for advice, call us on 01895 207892 or email employment@ibblaw.co.uk