Chancellor's share-scheme plans get cynical response

The hotel and restaurant industry has reacted with scepticism to chancellor Gordon Brown's plans to give tax breaks to staff who join employee share schemes.

Hospitality firms including Stakis Hotels and Granada have been increasingly offering such schemes in recent years as a way of keeping and motivating good staff (Caterer, 23 July, page 16).

Brown's tax incentives, details of which have yet to emerge, will be designed to double the number of companies that offer all their employees the chance to own shares.

But Neville Abraham, chairman and chief executive of Groupe Chez Gérard (which runs its own option scheme), described Brown as "a politician flying a kite when he has nothing else to say".

He added: "I am in favour of anything that helps employees become shareholders, but I will believe it when I see it."

Neil Chrisman, finance director of Stakis, warned that share schemes in the current economic climate could turn out to be a double-edged sword.

"With the recent drop in share prices, people must always be aware that there is a downside," he said.