Plans to give workers the opportunity to give up employment rights in return for shares in their company have been described as "brilliant" by a North Yorkshire businessman-turned-MP.
Chancellor George Osborne announced new "employee-owners" will receive between £2,000 and £50,000 of shares that will be exempt from capital gains tax when sold, and in return will give up rights on unfair dismissal, redundancy and the right to request flexible working and time off for training.
TUC General Secretary Brendan Barber said: "These complex proposals do not look as if they will have very much impact as few small businesses will want to tie themselves up in the tangle of red tape necessary to trigger these exemptions."
But Skipton and Ripon MP Julian Smith has given the proposal his backing:
Great announcement at #cpc2012 on 'employee owners' by Chancellor. Freeing up business from red tape whilst good for staff. Brilliant.
A North Yorkshire MP has likened today's deal to roll out high-speed broadband to most of the county to "the coming of the railways". North Yorkshire County Council has selected BT to roll-out high speed broadband across the county in a £50 million investment.
Julian Smith, MP for Skipton and Ripon, who led the campaign to win pilot status and Government investment, has been speaking to Calendar's Political Correspondent Ben Erlam about the announcement.