The UK government's decision to appoint a new champion for mutuals and co-operatives marks a significant shift in strategy aimed at doubling the sector's current size. Economic Secretary Rachel Blake MP unveiled the initiative during her speech at the Co-op Congress, where she underlined the crucial role these businesses play in fostering community engagement and providing individuals with a direct stake in their workplaces and communities.
Mutuals and co-operatives are distinct business models that account for over 8,400 registered entities across the UK. These organisations collectively manage approximately £223 billion in assets and boast 12 million memberships. The proposed champion will work to enhance the sector's visibility and advocate its interests within government departments, ensuring their unique contributions and challenges are effectively addressed at a policy level.
The appointment builds on previous efforts, including a recent call for evidence on co-operatives and non-financial mutuals issued by the Department for Business and Trade. The Financial Services and Markets Bill, now before Parliament, also includes reforms designed to facilitate credit unions' expansion and increase access to affordable credit and secure savings options for more individuals.
Blair McDougall MP, Minister for Small Business & Economic Transformation, reinforced the government's support for co-operatives and mutuals, highlighting their role in fostering local pride and supporting communities. He expressed confidence that a dedicated champion would help dismantle barriers to growth and reinforce the ambition to double the sector's scale.
With cross-party consensus on the importance of the co-operative movement, this move signifies a renewed focus on a business model prioritising member benefit and community value. The opposition Labour Party has historically supported the co-operative sector, although details of their specific proposals for its growth may differ.