Plans for “John Lewis” economy

NICK Clegg will unveil plans today to create a “John Lewis economy” by radically increasing employee share ownership.

Liberal Democrat ministers are to explore ways of getting employee ownership “into the bloodstream” of the British economy - including the introduction of a right for workers to request shares in their companies. The Deputy Prime Minister will say that employee-owned firms tend to perform better, which will help boost growth.

The move would also challenge the corporate culture and help usher in a new era of “responsible capitalism”, he will say.

Hide Ad
Hide Ad

At an event hosted by the City of London Corporation and the Centre Forum think tank, he will say the concept of employee ownership has been a “touchstone” of liberal thinking since the 19th century.

“We don’t believe our problem is too much capitalism - we think it’s that too few people have capital,” he will say.

“We need more individuals to have a real stake in their firms. More of a John Lewis economy, if you like.

“And what many people don’t realise about employee ownership is that it is a hugely underused tool in unlocking growth.

Hide Ad
Hide Ad

“I don’t value employee ownership because I believe it is somehow ‘nicer’ - a more pleasant alternative to the rest of the corporate world. Those are lazy stereotypes.

“Firms that have engaged employees, who own a chunk of their company, are just as dynamic, just as savvy, as their competitors. In fact, they often perform better.

“Lower absenteeism. Less staff turnover. Lower production costs. In general, higher productivity and higher wages.

“They weathered the economic downturn better than other companies.”

Hide Ad
Hide Ad

Lib Dem Business Minister Ed Davey will be in charge of the drive within the Government to work out the barriers to employee ownership so that they can be removed. He will be looking specifically at the possibility of introducing a universal right for employees to request shares in the companies they work for.

Danny Alexander, the Lib Dem Chief Secretary to the Treasury, will be studying tax arrangements for employee-owned firms. Mr Clegg will host a summit on the issue later in the year.