The government's controversial initiative which allows companies to offer shares to employees in return for them giving up certain employment rights will go ahead, the chancellor has confirmed.
Although a very brief reference in George Osborne's Autumn Statement speech in the House of Commons, the full document released by the Treasury confirms that the so-called 'shares for rights' scheme will come into force.
The news is despite reports that among the 209 business and employee groups that responsed to a consultation over the idea, only five outrightly backed it.
Speaking to BusinessZone.co.uk, Sarah Lafferty, founder of Round Earth Consulting, said: "My instant reaction to this is that it seems like too much complexity, ambiguity and red tape in return for marginal (if any) gains to me as a small business employer.
"I also don't see how this is going to be an attractive proposition for the average employee who I would be looking to hire, most of whom are not in a position to 'invest' in a company and just want to get paid so they can survive and pay off debts.
I'm afraid it strikes me as a little out of touch with reality. If this is all the chancellor has come up with to stimulate small business growth in the Autumn Statement, I remain disappointed."
The full text from the Autumn Statement report: