Writing for Co-op News, the Labour leader said that the Party is consulting on new proposals giving workers a statutory right to request an employee buy-out when businesses are being sold.

He explains how many entrepreneurs, particularly in smaller and privately-owned firms, would like to sell to their employees when they move on or retire. This does not happen often enough – but when it does there is evidence that employee ownership can lead to strong productivity and growth.

The new right would give employees the time to organise the finance they need to match any other offers and ensure that employers are able to consider that request with the seriousness it deserves.

In the article, Mr Miliband also committed to helping co-operative and mutual organisations to compete on a level playing field by giving them greater access to the finance they need to succeed through its new British Investment Bank.

In the article, Mr Miliband also praised the Co-operative Party for having helped to shape many of Labour’s new policies including promoting credit unions in place of pay-day lenders, reforming the energy market, empowering consumers, increasing the voice of passengers and employees in how transport services are run, and putting football fans back at the heart of their clubs.

 “Employee buyouts show how self-help and mutuality can build resilience into our economy, saving productive businesses and decent work. Many employers looking to sell their companies value these buyouts because they transfer ownership to people with a genuine interest in the firm’s long-term success.   That’s why we are consulting on new proposals giving employees a statutory right to request employee ownership during business succession.”

The plans in detail:

A statutory right to request employee ownership.

Labour will consider introducing a statutory right for workers to put in an offer when a company is being sold, dissolved or floated on the stock market. Under these proposals, employees could be notified in advance of a business take over or disposal and be given the opportunity to prepare an employee buyout. This would give employees the time to organise the finance they need to match any other offers, and ensure that employers are able to seriously consider that request.

 New support for co-operative and mutual organisations through the Business Investment Bank.

Labour will create a British Investment Bank, providing long-term funding for small and medium-sized businesses. This, along with a network of regional banks, will boost lending for small businesses so that they can grow. Labour will also make this support available to co-operatives and social enterprises to ensure that they too have access to the finance they need to innovate and grow.