East Devon launches UK’s first grant supporting employee ownership
Report by Duncan Williams for Pulman's Weekly News
East Devon District Council (EDDC) has unveiled the UK’s first local authority grant aimed at supporting businesses transitioning to employee ownership.
The new pilot fund provides financial assistance to business owners looking to sell their companies to staff via an employee ownership trust. The grant, now open for expressions of interest, will help cover legal, training, and administrative costs associated with the process.
Councillor Paul Hayward, EDDC’s portfolio holder for assets and economy, said:
“Employee ownership helps secure a business’s future, rewards the people who make it successful, and keeps wealth in the local economy. We’re proud to launch this innovative pilot and support businesses exploring this way of working.”
According to national data, employee-owned businesses experience a boost of 8–12% in productivity, average annual wages £2,900 higher than standard businesses, and an 83% increase in staff motivation. There are also tax advantages, including Capital Gains Tax relief when over 50% of the business is transferred to an employee ownership trust.
The Employee Ownership Association praised the initiative, calling it “a better way of doing business” that improves staff wellbeing, resilience, and business performance. They commended EDDC for taking a pioneering approach to support local succession planning.
Market Carpets, an employee-owned East Devon Launches UK’s First Grant Supporting Employee Ownership in Exmouth, highlighted the long-term benefits of this model. “Becoming an employee-owned business is about more than just changing ownership - it’s about creating stability for our team and building a lasting legacy for our family-run business,” a company representative said.
With an initial budget of £5,000, the fund is expected to support between two and five businesses in its pilot phase.
For more information or to apply, visit eastdevon.gov.uk/employeeownership or email business@eastdevon.gov.uk
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