Seetec calls for stronger focus on employee ownership to drive growth

Seetec has called on the Government to focus on economic growth following changes to capital gains tax (CGT) for founders selling to employee ownership trusts (EOTs). 

The company said the change should push policymakers to put employee ownership at the centre of the UK’s growth plans.

Concerns have been raised in the employee ownership sector that reduced tax relief could slow adoption. 

Seetec said the incentive is still favourable compared to other exit routes and helps businesses move to employee ownership for the right reasons. 

The company added that attention should be given to what employee ownership brings to the UK economy, including higher productivity, stronger local economies and long-term resilience.

John Baumback, CEO at Seetec, said: “Employee ownership is a practical way to build stronger businesses, support growth, and keep value in the communities where it is created. 

“This is the right moment to focus less on the transaction and more on the long-term benefits for the economy and the workforce.”

At the Employee Ownership Association (EOA) Conference in Telford, sector leaders highlighted the benefits EO businesses deliver, such as stronger cultures, better engagement, improved wellbeing and higher productivity.