Major UK Employers Urge Chancellor to Make Simple Employee Share Ownership Reform in Budget
In an open letter to Rachel Reeves, they urge the Government to reduce the mandatory SIP holding period from five to two years, making it easier for millions of workers to become company shareholders.
This letter comes at a key moment after the Chancellor’s Mansion House speech, in which she set out a clear ambition to see more ordinary people investing in the stock market. The signatory companies believe the current five-year SIP holding period acts as a barrier to wider employee participation. Lowering the requirement to two years would bring the scheme into line with modern working practices and further the Government’s goal of encouraging both company and employee investment in Britain’s future.
The reform would empower more people to benefit from share ownership, promote savings, and support nationwide economic growth.
Sophie Altaf, Head of ProShare - which helped coordinate the letter - said: “In her Mansion House speech, the Chancellor made it clear that she wants to see an increase in ordinary, often first-time, investors in the stock market. Greater investment in Employee Share Ownership plans would help achieve this.
“By reducing the SIP holding period, the Chancellor can help unlock share ownership for many more working people, connect them more closely with their employers, and give British businesses a vital new tool for attracting and retaining top talent.
“A simpler, more accessible SIP will boost financial inclusion, transform saving habits, and create a workforce truly invested in the UK’s economy.
Kirsteen Sullivan MP, Labour and Co-operative, said:
"With the Government’s ambitious agenda to support staff, back British business and encourage share investment, modernising employee share ownership plans has an essential role to play."
END
The letter was supported by 50 organisations, and the following companies have agreed to be named in this press release
Notes to editors:
Signatory companies to this letter include:
Howdens
Diageo
RM2
Howells
CGIUKI
Wickes
Wickes
Ledgy
Halma
Croda
Experian
Vodafone
Wealth at Work
Forvis Mazars
Pearson
Equiniti
Pinsent Masons
Tapestry Compliance
Vestd
HWC
Computershare
Gamma
MUFG
Sharegift
Optio Incentives
JTC
Indigo Governance
Cytec Solutions
Travers Smith
Vistry
• About ProShare: We are an industry body with 150+ corporate members, including some of the UK's biggest employers, and we are the voice of Employee Share Ownership (ESO). In 1992 we were established by the Government, a group of FTSE 100 companies and the London Stock Exchange to promote wider employee share ownership. Today, we are funded only by members and focus on helping to promote ESO in the UK as the voice of employee share plan practitioners and professionals.
• There are a number of HMRC-approved Employee Share Ownership (ESO) schemes which allow employees to purchase shares in the company they work for, often at a discount and in a tax-efficient manner, giving employees an ownership interest in their employer.
• Over a million people every year invest in a tax advantaged share scheme and there are two ‘flagship’ plans which companies can offer to all employees - Save As You Earn (SAYE) and Share Incentive Plans (SIPs). You can find out more about these in the attached briefing.
David Mortimer
Proshare
dmortimer@cgi.org.uk
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