HMRC And UK Productivity

EDM number 1349 in 2015-16, proposed by Greg Mulholland on 11/04/2016.
Categorised under the topics of Companies, Economic situation and Financial services.

That this House notes the announcement in February by HM Revenue and Customs (HMRC) to remove the valuation check service for unlisted companies' employee share ownership schemes to take effect from 31 March 2016; is concerned that this decision was made with no consultation of the representative bodies which promote employee share ownership schemes in both listed and unlisted companies; is further concerned with the withdrawal of this vital service as many unlisted and smaller companies may no longer feel able to offer these schemes without the rubber stamp approval of HMRC; further notes the HMRC-commissioned research by Oxera which found these schemes have a significant impact on productivity; notes the UK still lags behind other developed nations on productivity levels and believes these schemes should be encouraged and supported by the Government; notes the benefits these schemes have in allowing employees to share in the financial performance of businesses which succeed through collective efforts; and calls on the Treasury to pause this decision until it has, in consultation with businesses and representative bodies, explored all options available to ensure employee share ownership schemes continue to be a mechanism used by all companies to make them more productive and ensure that their employees are able to share in the success they have helped to create.

This motion has been signed by a total of 17 MPs.