This browser is not actively supported anymore. For the best passle experience, we strongly recommend you upgrade your browser.
Back

Blog

| 1 minute read

A new road for co-ops? Our response to the Government's call for evidence

Over the last 18 months, we have seen a gathering pace around the Labour Government's manifesto commitment to doubling the size of the co-op movement.

This week saw the close of responses to the Government's call for evidence on support for co-operatives and mutuals, which reached out to the sector to invite views on how co-ops and mutuals can be better helped to start up, to grow, and how existing businesses can be encouraged to mutualise. These are key questions for the sector and for the Government, and we have seen helpful and informed responses from Co-operatives UK, Plunkett UK and others, including the Employee Ownership Association.

From our own response (attached below), the key points are that co-ops are a distinctive, purpose-led way of doing business - not just a slightly tweaked legal structure. The funding and support that they receive should recognise that and be re-shaped to accommodate it. We also argue for treating co-ops distinctly for tax purposes, including introducing a new and expanded Social Investment Tax Relief to encourage outside investment. 

There is a real sense that the infrastructure to support new and growing co-ops and mutuals needs to be strengthened. Alongside the work of the Law Commission in reforming and developing the law governing co-ops, it is really important that business support is provided, which is appropriately informed. It remains the case that lawyers and accountants are taught nothing about co-operative models in their training; nor, it seems, are business advisors. In that context, it can be no surprise that outside the co-op movement, awareness remains patchy at best.

It is also time for a single minister to take responsibility for the co-op movement, an appointee in the Department for Business and Trade - a Minister for Co-operation, improving on the current piecemeal landscape, with input from DBT but also from the Treasury and other government departments. 

The sector has spoken. It is time now for the Government to respond. 

This call for evidence on business support for co-operatives and non-financial mutuals aims to explore how the government can continue to support co-operatives and non-financial mutuals to start, grow and sustain, as well as support existing businesses transition into a co-operative or mutual model.

To make sure you receive all of our latest insights, subscribe here.

Tags

community ownership, co-operatives and mutuals, governance, social business