Employee ownership model making progress

A review of the progress that has been made in promoting and expanding employee ownership of UK businesses has said that "significant progress has been made" this year.

Graeme Nuttall's review of employee ownership in Britain was published in July 2012. The Nuttall Review recommended that Government build upon efforts to promote and raise awareness of the employee ownership model.

A year on, Mr Nuttall said that "much has been accomplished" and that there were "encouraging signs that this could be the decade in which employee ownership becomes a major part of the UK economy."

Progress has included:

  • the first national Employee Ownership Day in July to raise awareness of the model
  • the allocation of £50 million annually from 2014/15 to introduce tax reliefs for businesses adopting the employee ownership model
  • the publication of guidance to help businesses adopt employee ownership.

The progress report was announced alongside a new index, which will help investors identify the 69 companies currently listed on the London Stock Exchange that have at least three per cent of their shares held by or for the benefit of staff.

Business Minister Jo Swinson said:

"As we build a stronger economy, there has never been a more important time to promote successful ways of running a business. Evidence shows that businesses that adopt the employee ownership model can be more profitable, create more jobs and are more resilient to economic shocks."