Employee Share Ownership

HC Deb 19 October 1998 vol 317 cc924-5W

Mrs. Ewing

To ask the Chancellor of the Exchequer what action his Department(a) has taken and (b) plans to take to encourage more employee share ownership schemes. [55046]

Dawn Primarolo

The Government are keen to encourage employee participation through share ownership. In this way, employees are able to share in the success of firms they work for and feel part of the common effort. The existing Inland Revenue approved share ownership schemes enable around 2½ million ordinary men and women to benefit directly, and in a tax-efficient way, from any increase in the value of their companies which their own efforts have helped to bring about.

We remain committed to increasing employee participation through share ownership schemes, and all tax reliefs are kept under review. A tax break is not, however, the only way to encourage the spread of employee participation.