Deputy Prime Minister Nick Clegg has urged more companies to offer shares to their employees and plans to cut red tape and reform the tax system. Speaking to an audience in the London, he said: "what many people don’t realise about employee ownership is that it is a hugely underused tool in unlocking growth".

Getting "employee ownership into the bloodstream of the British economy" and creating a "John Lewis economy" will increase employee ownership of firms, lead to lower absenteeism among staff and lower production costs for firms."

Mr Clegg said: "We don't believe our problem is too much capitalism - we think it's that too few people have capital.

"Firms that have engaged employees, who own a chunk of their company, are just as dynamic, just as savvy, as their competitors.

"In fact, they often perform better. Lower absenteeism. Less staff turnover. Lower production costs. In general, higher productivity and higher wages. They weathered the economic downturn better than other companies."

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