Welcoming a New Government | The Opportunity to Grow Employee Ownership

As a new Prime Minister enters Number 10, the eoa sets out our priority policy asks to grow employee owned businesses in the UK

Image: Official portrait of Andy Burnham MP © House of Commons

The eoa welcomes new Prime Minister Andy Burnham and his government at an important moment for employee ownership and the UK economy more broadly.

Employee ownership is a proven mechanism to support and deliver:

• community wealth building
• stronger regional economies
• better jobs
• social value procurement outcomes
• care sector reform
• domestic industrial resilience
• Labour's commitment to double the mutual and co-operative economy.

We’re already working in partnership with the Mutuals and Co-operatives Business Sector Council to support Labour to deliver their commitment to double the co-operative and mutual economy.

We'll be engaging with the new Ministers when appointed to share our priority policy asks to grow employee ownership in the UK, which have been shaped with input from our members:

Our Key Policy Asks of Government

1. Stabilise & Future-Proof the EOT

The Employee Ownership Trust has been central to the rapid growth of employee ownership in the UK. But uncertainty created by changes to Capital Gains Tax relief is slowing transaction momentum.

We want to see legislative improvements and consolidated HMRC guidance that maintain robust safeguards while reducing uncertainty, administrative cost and risk for business owners looking to sell to an EOT

2. Create Tailored Capital Instruments for EO

Access to appropriate finance remains a structural barrier for some businesses that could benefit from employee ownership, particularly asset-intensive sectors and EO businesses that are ready to invest in growth while still managing deferred payments to vendors.

We’re calling for Government to work with the British Business Bank and values-aligned investors on a dedicated Employee Ownership Finance Programme.

This should support growth and acquisition finance, refinancing of deferred consideration, and targeted transition support where EO can deliver strong social and economic impact.

3. Evolve the EO Models to Encourage Greater Individual Wealth Creation

The EOT is a proven model for succession and business stability, but there’s an opportunity to explore how employee ownership can do more to support individual wealth creation for employees over time.

We want Government to commission a time-limited programme with HM Treasury, HMRC, and the Department for Business and Trade to explore a legislative toolkit that builds on the strengths of existing UK models. 

4. Leverage Public Procurement to Support EO 

Public procurement can play an important role in recognising business models that deliver fair work, participation, and shared economic value. EO businesses already demonstrate these qualities through broad-based profit sharing, employee voice and collective ownership.

We’ll work with Government to explore how procurement policy can better recognise EO, including through social value criteria, reserved competitions where appropriate, and better measurement of direct and supply-chain expenditure with employee owned businesses.

The Right Policy Environment 

“A warm welcome to Andy Burnham into Number 10. I look forward to working with both Andy and his incoming Ministers to help employee ownership grow right across the UK,” said James de le Vingne, Chief Executive of the eoa.

“With the right policy environment, we can unlock the next phase of employee ownership and ensure more people have a meaningful stake and a real say in the success they help create.”

Why Employee Ownership?

Employee ownership is already helping businesses build resilience, share success more fairly, and create better livelihoods for working people. 

With the right partnership between government and the employee owned sector, it can do even more.

Our UK EO Growth Strategy is targeting 7,500 employee owned businesses by 2023 with a stretch goal of 10,000.

To get there, we’ll work with the new Prime Minister, ministers, and decision-makers across government to remove growth barriers, improve EO understanding, and ensure more founders, employees, and communities can access EO’s proven benefits.

Click or tap here to read our Priority Policy Asks in full.