In a speech to the Institute of Chartered Accountants, Clegg said that the economy ‘desperately needs an injection of responsibility’ and is now encouraging more of what he calls stakeovers, namely staff buy-outs to save ‘great British firms’.
Citing evidence from Co-operative that shows, during 2011, employee-owned firms grew 50 per cent fast than the economy at large, Clegg said that the Treasury is now conducting an internal review looking at the role of employee ownership in supporting growth.
The review will be completed in advance of chancellor George Osborne’s Autumn Statement, with three particular recommendations from the report driving the move.
The government welcomes Nuttall’s call for a sector-led institute, aimed at providing information and advice to managers and employees. The institute is set to bring together the Employee Ownership Association, Baxi Partnerships, Prospects and Co-operatives UK.
Nuttall’s second suggestion, which Clegg says the government will be acting on, is to encourage employees and bosses to consider the employee ownership model, especially when a business is being sold.
Thirdly, Nuttall puts forward the notion of off-the-shelf toolkits for the employee ownership business model. It is a proposal which the coalition ‘will be taking forward’.