Scottish, Welsh & English Local Elections: What Do Results Mean for Employee Ownership?

On Thursday (7 May), the public went to the polls to vote in the Scottish and Welsh elections, as well as local elections across England. So, what does this mean for employee ownership?

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Scotland

The Scottish National Party (SNP) won the most seats in the Scottish Parliament elections (58 seats) but fell short of the 65 needed for a majority. 

While the SNP is expected to return to government for a fifth successive term, this means it’ll have to rely on support from other parties to pass legislation.

Where employee ownership is concerned, the SNP are committed to delivering the 2026 Community Wealth Building Act. This act aims to “keep wealth circulating locally, regionally and nationally, and ensure that economic benefits are broadly shared rather than concentrated”. 

One of the pillars of this act is Inclusive Ownership. While the SNP haven’t yet set out detailed actions under this pillar, they maintain a commitment to reaching 500 employee owned businesses (EOBs) in Scotland by 2030. 

Current figures from the Employee Owned Business Register suggest there are currently around 230 EOBs headquartered in Scotland, with a further ~100 trading there.

Wales

In Wales, Plaid Cymru become the largest party in the Welsh Senedd with 43 seats, with Reform UK pushing Labour into third place. 

This puts the Welsh nationalists in a comfortable position to form a minority government. 

Plaid Cymru is supportive of employee ownership. This includes a call for proactive support for succession and employee buyouts, and a renewed mission for the Development Bank of Wales to “significantly ramp up support for co-operatisation and employee ownership” included as part of their Economic Plan.

England

English local elections saw significant gains for Reform UK at the expense of both the Labour and Conservative parties, picking up more than 1,450 council seats. 

They also grew support in both Wales and Scotland. The party hasn’t set out specific policies relating to employee ownership, with a focus primarily on wider business conditions (and particularly taxation).

Continued Engagement

Capital Gains Tax (CGT) relief for Employee Ownership Trusts (EOTs) was reduced to 50% in the last Budget, and the eoa has been pushing for updated guidance, as businesses considering a transition to EO need to understand the full implications of this change and how the tax will be processed. 

In our ongoing conversations with HMRC, they’ve confirmed this guidance should be published very soon. 

“We’ll continue to engage with all major political parties to advocate for employee ownership,” said James de le Vingne, Chief Executive of the eoa.

“We already work closely with partners in Scotland through the IDBM network, and with Cwmpas in Wales to maintain strong relationships with devolved government. 

“Through our seat on the Mutuals and Co-operatives Sector Business Council and direct relationships with the Department of Business and Trade, HMRC, and HM Treasury, we’re also influencing central government.

“Our members are crucial to help us influence government and policy makers, by sharing your experiences and contacts where relevant. Our recent published Advocacy Pack includes template letters to engage your MP and there’s the perfect opportunity to do this in the run up to EO Day on 19 June.”