Following the Chancellor's announcement of a proposed new "employee-owner" scheme last October, we've been monitoring its progress with our article and subsequent update. On Wednesday, in the House of Lords debate on the Growth and Infrastructure Bill, the Lords voted against this proposal by a majority of 54.

The Lords considered that the Government's plans were harmful to growth, with Lord O'Donnell asking: “In the old days the price of slavery was 20 or 30 pieces of silver – is it now £2,000?

Lord Forsyth of Drumlean said “I am astonished that the Coalition would even think of bringing forward such a measure,” and that the proposals were "ill-thought through, confused and muddled”.

MPs will now consider whether to introduce the proposals back into the Bill or effectively abandon the scheme altogether when the Growth and Infrastructure Bill returns to the House of Commons.