Deputy Prime Minister Nick Clegg has championed the cause of employee share ownership, saying it will improve productivity and unlock growth.

He told an audience in the City that the government planned to cut red tape, and reform the tax system to accommodate employee ownership.

It is hoped the measures will create what he called a "John Lewis economy".

Shadow business secretary Chuka Umunna said Mr Clegg was following Labour's lead on responsible capitalism. Department store group John Lewis is owned by its employees and distributes its profits between them.