Autumn Statement 2012: Controversial 'shares for rights' scheme to go ahead
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: