Treasury to look at employee ownership schemes in bid to boost productivity

EXCLUSIVE

JACK BARNETT

RISHI Sunak and Jeremy Hunt are drawing up plans to revamp schemes designed to hand workers a stake in their employers, City A.M. can reveal. The Treasury will today ask businesses for their view on the effectiveness of governmentsponsored programmes that steer staff toward taking stakes in their employer by offering financial incentives.

The Prime Minister and Chancellor hope the shake up will stimulate economic growth by raising worker productivity and motivation.

Under the current landscape, workers can buy discounted shares in the company they work for –if that company has signed up –providing they set aside up to £500 each month for either three or five years, in what is known as the Save As You Earn programme.

A separate package, called the Share Incentive Plan, allows firms to gift staff up to £3,600 of equity in their company or help employees with the cost of purchasing shares.

A selection of tax reliefs are available on each of the programmes, from income tax through to capital gains.

The consultation is part of a government push to boost the nation’s productivity.

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