The enterprise management incentives (EMI) scheme was designed to help small, innovative companies across the UK reach their growth potential. The EMI scheme was created to bolster the attractiveness of share based remuneration, allowing small companies to offer a competitive remuneration package, comparable to larger more established companies, without the need to have cash on hand. The aim was that the EMI scheme allowed recruitment and retention of skilled employees to improve the growth of small businesses.
The Government announced back in the 2020 Budget that it would review the EMI scheme to ensure it is providing support for high growth companies to recruit and retain the best talent; as well as examining whether more companies should be able to access the scheme.
In the 2021 Budget the Government has announced that it is making a ’Call for Evidence’ to assess the effectiveness of the scheme and understand whether the EMI scheme could be extended to include more companies. The particular focus areas are:
- Whether the current scheme is fulfilling its policy objective of helping small and medium enterprises (SMEs) recruit and retain employees.
- Whether companies that are ineligible for the EMI scheme because they have grown beyond the current qualification limits are experiencing structural difficulties when recruiting and retaining employees.
- Whether the Government should expand the EMI scheme to support high growth companies and how.
- Whether other forms of remuneration could provide similar benefits for retention and recruitment as EMI for high-growth companies.
The Government seeks views from businesses, business representative organisations, and employees before the response deadline of 26 May 2021.
Responses can be submitted by email to: emiconsultation@hmtreasury.gov.uk