Employee ownership finally gets the backing of the Government

After the "shares for rights" false start, will the Government get it right this time?

The current profile and success of employee ownership is unprecedented. Employee ownership is now being embraced as the most prominent alternative to the over-dominant PLC model.

Employee owned businesses are largely or fully owned by their workforces either through direct employee share holdings or shares held in Trust on behalf of and for the benefit of employees. Their workforces are very actively engaged in the management and development of their businesses. And economic competitiveness and high performance are a central part of the DNA of employee owned companies. The compelling success stories of employee owned businesses such as Clansman, Unipart and Arup demonstrate the very special nature of employee ownership.

More and more politicians, businesses and service commissioners are realising the contribution that employee ownership is making and can make to the growth agenda and to the delivery of world class public services. It is a realisation that employee owned organisations tend to achieve higher productivity, greater levels of innovation, better resilience to economic turbulence and have more fulfilled workers who are less stressed than colleagues in conventionally owned organisations. It is also a recognition that employee ownership works financially as over the last decade and more, investments in shares in employee owned businesses have considerably outperformed those in conventionally owned businesses.

This current interest in employee ownership has been reflected over recent weeks in two important initiatives.

Firstly the Treasury has completed its review into the taxation of employee ownership in the UK. Its conclusions, announced as part of the Chancellor’s Autumn Statement, are significant. The Autumn Statement argues that employee ownership is an important part of the UK growth agenda and explicitly confirms it as a business model that the Government supports. This is a powerful and unique endorsement of a part of the economy that contributes more than £30bn to UK GDP each year.

The Statement also undertakes to bring to the table the resources and expertise of the Treasury to work with other parts of Government to increase the number of employee owned businesses, to implement a package of simplifications to existing employee share schemes and to keep under review the possibility of introducing at the time of the next Budget further tax incentives to promote employee ownership.

Secondly, Government has accepted in full all of the recommendations for how to grow employee ownership in the UK that are contained in the recently completed Nuttall Review into the barriers to such growth.

The inaugural meeting of the group that is now accountable for the implementation of these recommendations, chaired by the relevant Minister Jo Swinson MP, has just taken place. This development brings a realistic prospect that a new future for employee ownership that many of us have been driving for will arrive. A future in which there is far greater awareness of employee ownership options, there is a simplification of those options and there is better access to finance and advice for businesses that want to implement and or fund employee ownership.

These two reviews, the Treasury and Nuttall Reviews, are ones that the Employee Ownership Association successfully pushed very hard for.

Their outcomes and the attendant commitments mark another important step along the way towards employee ownership becoming a central part of industrial policy, part of the mainstream.

Employee ownership is currently growing at an annual rate of around 10 per cent. Interest in it within business communities and amongst public service commissioners is increasing daily. The number of funders and advisors competent to engage in employee ownership is on the rise. These are exciting times.  The challenge ahead is to build on this momentum in pursuit of the big picture – 10 per cent of UK GDP delivered by employee ownership by 2020. With the right will and skill this is perfectly possible.

The Co-operative society circa 1929. Photograph: Getty Images

Iain Hasdell is the chief executive of the Employee Ownership Association the voice of employee owned businesses in the UK and a member of the Mutuals Task Force.

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The first godless US election

America’s evangelical right has chosen Donald Trump, who hardly even pays lip service to having faith.

There has never been an openly non-Christian president of the United States. There has never been an openly atheist senator. God, seemingly, is a rock-solid prerequisite for American political life.

Or it was, until this year.

Early in the 2016 primaries, preacher and former Arkansas governor Mike Huckabee and former senator Rick Santorum – both darlings of the evangelical far right – fell by the wayside. So did Wisconsin governor Scott Walker, the son of a preacher.

Ted Cruz, once the Republican race had thinned, tried to present himself as the last godly man, but was roundly beaten – even among evangelicals – by Donald Trump, a man whose lip service to religion was so cursory as to verge on satire.

Trump may have claimed in a televised debate that “nobody reads the Bible more than me”, but he demurred when pressed to name even a verse he liked. His pronouncements show a lack of any knowledge or interest in faith and its tenets; he once called a communion wafer his “little cracker”.

The boorish Trump is a man at whose megalomaniacal pronouncements any half-hearted glance reveals a belief in, if any god at all, only the one he sees in a mirror. The national exercise in cognitive dissonance required for America’s religious rightwingers to convince themselves that he’s a candidate with whom they have anything in common is truly staggering.

But evangelicals don’t seem troubled. In the March primary in Florida, Trump carried 49 per cent of the evangelical vote. He won Mississippi, a state where fully three-quarters of Republican primary voters are white evangelicals.

In the Democratic primary, Bernie Sanders became the first Jewish candidate ever to win a presidential primary – though he has barely once spoken about his faith – and Hillary Clinton has spoken about god on the campaign trail only occasionally, without receiving much media play. In fact, when the question of faith came up at one Democratic debate there was a backlash against CNN for even asking.

The truth is that Christian faith as a requisite for political power has drooped into a kind of virtue-signalling: the “Jesus Is My Homeboy” bumper-sticker; the crucifix tattoo; the meme on social media about footprints in the sand. It is about identity politics, tribal politics, me-and-mine versus you-and-yours politics, but it hasn’t really been about faith for a while.

What the hell happened?

Partly, there was a demographic shift. “Unaffiliated” is by far the fastest-growing religious category in the US, according to a study by the Pew Research Center, which also showed that the total proportion of Americans who define as Christian dropped almost 9 percentage points between 2007 and 2014.

There is no doubt that America is still a fairly devout nation compared with the UK, but the political mythos that developed around its Christianity is a relatively late invention. The words “under god” were only implanted into the pledge of allegiance – between the words “one nation” and “indivisible” – in 1954, by President Eisenhower.

The ascendance of the political power of the Christian right in America happened in 1979, when a televangelist called Jerry Falwell founded a pressure group called Moral Majority.

Moral Majority’s support for Ronald Reagan was widely credited for his victory in the 1980 election, which in turn secured for them a position at the top table of Republican politics. For three decades, the Christian right was the single most important voting bloc in America.

But its power has been waning for a decade, and there are greater priorities in the American national psyche now.

Trump’s greatest asset throughout the primary was what makes his religiosity or lack thereof immaterial: his authenticity. His lack of a filter, his ability to wriggle free from gaffes which would have felled any other candidate with a simple shrug. This is what not just religious voters, but all of the Republican voting base were waiting for: someone who isn’t pandering, who hasn’t focus-grouped what they want to hear.

They don’t care that he may or may not truly share their belief in god. Almost all voters in this election cycle – including evangelicals, polling suggests – prioritise the economy over values anyway.

On top of that, the Christian right is facing the beginnings of an insurgency from within its own ranks; a paradigm shift in conservatism. A new culture war is beginning, fought by the alt-right, a movement whelped on anarchic message boards like 4chan, whose philosophical instincts lean towards the libertarian and anarcho-capitalist, and to whom the antique bloviation of Christian morality politics means nothing.

Trump doesn’t pander, an approach only made possible by social media, which amplifies his voice six millionfold while simultaneously circumventing the old establishment constructs – like the media – which had previously acted as gatekeepers to power.

The Christian right – now personified in Jerry Falwell Jr and Liberty University, which Falwell senior founded in the Seventies – found itself another of those constructs. They were forced to choose: jump on board the Trump Train or be left behind.

They chose Trump.

Nicky Woolf is reporting for the New Statesman from the US. He tweets @NickyWoolf.