14 MARCH 1987, Page 27

Tying pay to profit

ONE proven form of direct ownership was penalised last month. Profit-sharing co- operatives like the John Lewis Partnership were told that distributions of profit from their trusts would suffer a levy of National Insurance contributions. That shows the revenue-raisers' keenness, but a Chancel- lor who has steadily argued that pay should be linked to profitability has scarcely set out to hurt the few businesses which do it. The betting must be that he plans a more general incentive scheme which would seek to tie pay and profits.