That this House has considered Government support for the co-operative sector.
It is a pleasure to serve under your chairmanship, Mr Turner, in this important debate. I pay tribute to those leading this great movement in our co-operative societies, our mutuals and the Co-operative party, of which I am proud to be the chair. My thanks go to the national executive committee and to our general secretary, Joe Fortune, and his team for their tireless work in growing and strengthening co-operation across the United Kingdom.
This year, as we mark the UN International Year of Co-operatives, it is fitting to reflect on the difference that co-operation makes, and the extraordinary opportunities available to us. The roots of our movement run deep, back to 1844 and the Rochdale pioneers: 27 working people who, through solidarity, challenged exploitation and built something that was lasting.[Official Report, 22 October 2025; Vol. 773, c. 4WC.] (Correction) Their values of open membership, democratic control, member participation, autonomy and education all remain a living framework for economic democracy today. If their call to give working people power and a voice was important then, I think we can all agree that that call is ever more urgent today.
As my hon. Friend will know, the co-operative movement is a pillar of ethical business in Britain—owned by its members, rooted in its communities and committed to fairness. It includes the multiple Co-op stores that we have in Beckenham and Penge, which not only provide good jobs and affordable food but reinvest in local causes. Does he agree that it is important that we champion and expand co-operatives as part of building a fairer, more democratic economy?
I think a lot of people in Britain feel as though it does not matter what they do, how hard they work or how big their contribution is; they are just not able to make ends meet or get on in life. The communities where they live have been incrementally eroded and hollowed out, and they do not feel like they are getting on and doing well.
The founding principle, if we take ourselves back to Rochdale and towns like Oldham, where this is part of our heritage, history and identity, was a sense that if we build something together, we share the dividend that comes from it—that we redistribute the value that we create in order to build an even stronger community. I think we observe a country and economy where the wealth that we create is taken off to foreign lands and international investors more than it is reinvested back in the local community. Co-operation is of course about power, but it is also about place and identity, and the co-operative movement is central to that.
My hon. Friend kindly mentioned Rochdale and its proud history in 1844 of the Rochdale pioneers founding this global movement for social justice. It is still a movement that is alive and kicking today. It is not a relic, as is evidenced by the Metro Moneywise credit union, which celebrated its 35th anniversary last week in a town hall ceremony in Rochdale at which I was pleased to be present. Does my hon. Friend agree that the most important point is that the Labour party has agreed to double the size of the co-operative economy, and that the whole of Government needs to get stuck in to achieve that—not just the Treasury, and not just the brilliant new unit in the Ministry of Housing, Communities and Local Government, the co-operative development unit, but every part of Government?
If it is to work, the whole of Government has to own this agenda. It is important that the Treasury and the Department for Business and Trade take a leading role, and of course, the community anchor in the MHCLG is important too, but the truth is that communities function in a dynamic way, and every bit of Government across health and social care, education and our school system, and everything else that Government have oversight of, comes into play. I absolutely agree that if we want to double the size of the co-operative economy, and for that to be felt in every part of the country, the whole of Government has to own that agenda.
Across Britain, too many people feel that the economy no longer works for them—that decisions that shape their lives are made far away by investors they will never meet and for reasons they do not agree with. We see the results in hollowed-out high streets, in local businesses that are bought and closed by distant investors, and in a growing sense of powerlessness. If we want to rebuild trust in politics, we must rebuild trust in the economy alongside it. That means giving people real ownership and control over the businesses that shape their lives, because ownership matters; that is exactly why those with wealth fight to keep it. We want more people to benefit and to have a stake in the future.
The good news is that the UK’s co-operative economy is thriving. Today there are 7,400 co-operatives, with 16.6 million members, and 240,000 employees working hard in their communities. Together they span retail, housing and agriculture, and beyond that, of course, social enterprise, creating decent jobs and trying to provide food and shelter for millions of people in this country.
Going further, our 42 building societies, owned by their 27 million members, contribute £7.2 billion to the UK economy. They account for nearly a third of UK mortgages and maintain over a third of all bank branches. Of course, as my hon. Friend the Member for Rochdale (Paul Waugh) said, our credit unions serve their 2.3 million members and hold nearly £5 billion in assets. Do people know that there are more members of building societies and credit unions than there are people who voted in the last general election? This is not a fringe part of the economy; it is absolutely foundational.
My hon. Friend knows that for many years I worked in co-operative development, including running co-operatives in Yorkshire and the Humber. To start new co-operatives, particularly co-operative legal forms, is a complex business. Under the last Labour Government, there was a significant level of support on the ground for co-operatives: the co-operative enterprise hub; Business Link had social enterprise units; and other forms of support. Does he agree that we need to try to establish new forms of co-operative support on the ground for people who want to start and develop new co-operatives?
The fact is that those of us who believe in co-operatives as a movement and as a principle get it, but we can be quite selfish about it, and we quite enjoy co-operatives and mutuals being the best-kept secret in the UK economy. Well, I am sick and tired of their being a secret and I want them to be mainstream. When somebody is setting up a business in this country, I want them to look at co-operatives and say, “That is the obvious choice for us and for our community.” I do not want co-operatives to be a sideline any more.
That is why co-operative development agencies and the whole of Government approach are important. It is also why education, access to finance, the surrounding legislation and, of course, creating a level playing field so that co-operatives can thrive are all important, too. We need to mainstream the idea of co-operatives and spread it out. If we do that, the economy will benefit even more, because co-operatives are more resilient and survive longer than many other businesses, and they return more to the UK economy, which can be reinvested in the community.
The barriers to co-operatives are well known; my hon. Friend the Member for Leeds Central and Headingley (Alex Sobel) touched on some of them in his intervention. There is difficulty in accessing finance; obviously, there are issues around equity investment and the barriers that exist there. There is an outdated and fragmented legal framework, and there is limited awareness of co-operatives among banks, businesses and advisers, and even in Government itself.
So, I would be grateful if the Minister, when he responds to the debate, could update us on Government plans: first, to progress the Mutual and Co-operative Sector Business Council; secondly, to work to improve access to finance for co-operatives; thirdly, the Government’s response to the Law Commission’s review of the Co-operative and Community Benefit Societies Act 2014; and finally, the plan to establish the co-operative development agency within Government.
It is a pleasure to serve under your chairship, Mr Turner. I thank the hon. Member for Oldham West, Chadderton and Royton (Jim McMahon) for securing this debate. The hon. Gentleman is right that co-operatives are incredibly important, including in Northern Ireland. I will give some examples from my constituency.
I am sold on the co-operative idea because it brings opportunity to those who might not have such opportunity in normal life, and it is really important that we do that. The co-operative sector is of course deeply rooted in local community and aims to reinvest in local services, to support goals and to help people elevate themselves from where they are to better, and because of that we should encourage it in every way that we can. I look forward to giving the local perspective from my constituents on how the co-operative sector goes above and beyond to help and train local people.
Our co-operative sector carries a wide range of economic and social benefits both for its members and for the wider community. Co-operatives are a worthwhile alternative to traditional business models. They give a different perspective, give a different opportunity and enable people to better themselves. In my Strangford constituency, they have an impact. We have the Newtownards credit union. The hon. Member for Oldham West, Chadderton and Royton mentioned credit unions and we have buoyant credit unions in Newtownards, Portaferry and Kircubbin.
The Newtownards credit union was established in 1993 and serves constituents throughout the Ards and North Down borough council area. The credit union is a member-owned financial co-operative, meaning that people living or working in the area can save and access loans. I remember when a credit union was started in Greyabbey, which then transferred to Newtownards. The first thing I did when my boys were younger was to start a credit union account for them, both to support the credit union and to give my boys an idea, at a very young age, about saving money—helping themselves while also helping others, because that is what co-operatives do.
I have always wanted to intervene on the hon. Member—the shoe is on the other foot. He mentions Portaferry; my dad is from there. It is where he was born, went to school and learned his trade as a carpenter before moving to Britain. The project the hon. Gentleman mentions is very special—it is the first cohousing project in Northern Ireland and I go there quite a lot. I have seen it; it is intergenerational, mixed-income and run by the community. Is not Portaferry Cohousing a fantastic example of how co-ops can keep decisions local, build trust and create housing, jobs and services that fully reflect the values and priorities of the local community?
I absolutely agree. I spoke to the hon. Gentleman beforehand; I was fairly sure that he would come up with a Portaferry connection to the debate, because he has family connections down there. I am very pleased to see him doing so well. He had to leave Portaferry to come here and do well, but those who stayed there are doing well too. I thank him very much for that intervention and wholeheartedly support it. He has summed things up really well. That is what Portaferry Cohousing does: gives people a vision for the future and a better place in life.
I also admire the work of the Ards community network, the third group I wish to speak about and one I have discussed in the House before. The network is a voluntary and community sector organisation that upholds and supports local community groups and facilitates training for development. It is truly wonderful. I am aware of the work undertaken by Cathy Polley, the lady who runs it, taking the time to instil co-operative values and shared goals for the betterment of the community. That is a third example of how co-operatives work so well in my constituency of Strangford, and indeed across many parts of Northern Ireland.
I understand that the Government have plans to double the size of the mutual sector. I am pleased at that news, as we must endeavour to encourage social value while also increasing business performance. Co-operatives UK has said that
“the planned changes do not go far enough in enabling the sector to raise finance”,
which may cause some problems. When the Minister responds, can he tell me what discussions he has had with co-operatives on this issue? Have the Government gone far enough, and if not, why not? First of all, as I should have done at the beginning—apologies for not doing so—I welcome the Minister to his place and wish him well in his new role. He is there because he is the right man for the job, and we all thank God for that.
It is an honour to serve under your chairmanship, Mr Turner. I thank my hon. Friend the Member for Oldham West, Chadderton and Royton (Jim McMahon) for bringing this really important debate to the House.
I am immensely proud to represent the communities of Leigh and Atherton—towns that embody the very best of Britain, built on pride, kindness and hard work. They show what can be achieved when people pull together. We talk about co-operatives, but I also want to talk about social enterprise. Together, they form a broader movement of collective ownership, where people have a direct stake in the success of their community.
These models share the same DNA: accountability, reinvestment and a belief that decisions should be made for people, not just for profit. They are vital to building fair, resilient economies from the ground up. Time and again, I have seen that spirit in Leigh and Atherton—people rallying on Facebook groups to help neighbours; volunteers restoring heritage sites; and grassroots projects breathing life back into our town centres. That is why I stand here today championing the co-operative and social enterprise sector. This is not just about business; it is about community pride, regeneration and empowerment. Town regeneration is happening right now. The Government are making real progress through the English Devolution and Community Empowerment Bill, the pride in place programme and the Crime and Policing Bill, all of which were designed to revitalise our high streets and restore confidence in our towns.
However, none of that will succeed without local people leading the charge. In our area, we have seen exactly what that leadership looks like. In Tyldesley, For Tyldesley has helped attract investment and given local people ownership of their town centre. In Atherton, the Snug—a Music Venue Trust asset, led by grassroots music champion Rachael McEntee—is building a vibrant cultural scene from the ground up. In Leigh, Leigh Works is creating space for small businesses and digital innovation to thrive. These are not isolated examples; they are part of a growing movement of local ownership and community-driven success.
It is a pleasure to serve under your chairship, Mr Turner, especially as some of my earliest co-operative meetings took place in what is now Kingston upon Hull East, your constituency. I thank my hon. Friend the Member for Oldham West, Chadderton and Royton (Jim McMahon) for securing this important debate.
One of the first visits that I undertook as a Member of Parliament was to 28 Long Causeway in Peterborough, home of my local Nationwide building society branch. It has been there since 1974 but it started its life in the city in 1954, a few doors down from its current location, as the Co-operative Permanent Building Society—at a time when Winston Churchill was the Prime Minister and the world was very different.
For a post-war generation, building societies and co-operatives were part of the new social contract—if they worked hard, they could get on in life, get a home and make a future for their children. The co-operative and mutual ideal has always been strong in the UK, but the idea of a purpose-driven economy feels even greater in today’s world. Against a backdrop of division, short-termism and populism, mutuals offer purpose and social value to our economy and communities. The co-operative and mutual sector is a vital part of the inclusive growth agenda of this Government, worth £93 billion in gross value added and £180 billion in turnover. Building societies have more than 27 million members.
Despite moves to demutualise the building societies in the UK—an act of economic vandalism by a previous Government—we still have more than 40 building societies holding nearly one third of UK mortgages. Nationwide, still standing strong in my city and many others, is the biggest lender to first-time buyers in the UK.
My constituency is home to the English Mustard Growers co-operative, which I often talk about. My constituency and that of my hon. Friend the Member for Norwich North (Alice Macdonald) supply the seed that goes into Colman’s mustard—many people will know the brand. I am pleased we have an agricultural co-op in Peterborough and our surrounding fenlands. It is an illustration that the mutual drive covers a wide range of industries, not just retail, as many will know.
It is a pleasure to serve under your chairship, Mr Turner. I thank my hon. Friend the Member for Oldham West, Chadderton and Royton (Jim McMahon) for securing this important debate. Like him, I am proud to be a Labour MP and equally proud to be a Co-operative MP. I also thank Joe Fortune, the party’s general secretary, who has joined us here today. I pay tribute to the many co-operators across our constituencies. There are too many in my constituency to name, but in particular I pay tribute to Danny Douglas and Councillor Chrissie Rumsby, who work tirelessly to make the case for co-ops and to drive the practical changes we need.
Founded in 1917, the Co-operative party has for over 100 years been the bedrock of community-driven enterprise, shared endeavour and equal empowerment. In Norwich, our connection with co-operativism extends even further. It was in 1858 that Norwich formed its first co-operative society, embracing a movement that has shaped my city ever since. As co-operators, we recognise that there is more than one north star guiding business. A successful enterprise can be run not only by the largest shareholders in a boardroom, but through the democratic will of those who use the business, work for the business and provide for the business. Members of a co-operative seek prosperity for one another and the community they serve. These enterprises are not only enriched by their social contract; they are enriching our economy by exhibiting a resilience that surpasses other business models. In fact, co-operative businesses are twice as likely to survive their first five years, compared with businesses following other ownership models, so this makes economic sense, too.
It is therefore no surprise that the Government plan to double the size of the co-operative sector through their small and medium-sized business strategy, which I welcome. With growth being the Government’s No. 1 priority, now is the time for us to seize the opportunity of co-operativism and knock down the barriers holding it back. So many people think of the food store when they hear the word “co-operative”. Many of us shop there, and in fact, many of us campaigned with it for some of the changes we have seen, such as the crackdown on shoplifting.
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After years without a mutual bank presence on the high street, the recent acquisitions of Virgin Money by Nationwide and of the Co-operative bank by Coventry building society mark a welcome return of mutual principles to mainstream banking on the high street. Employee ownership is rising, too, from 600 employee-owned firms in 2020 to 2,500 today. That shows what happens when Government action aligns with co-operative values: co-operatives are more likely to grow and more likely to survive.
However, despite our proud history, the UK now lags behind other countries. If we are to fulfil our potential, the Government must create an environment that enables co-operatives to thrive.
Beyond that, on building societies and credit unions, we need action on the Building Societies Act 1986 (Amendment) Bill, on fair limits for individual savings accounts or ISAs, and on reforming the common bond, so that more people can join building societies and credit unions.
On community ownership, we need clarity about the future of the Community Ownership Fund, so that local people can secure the assets that matter to them the most. On housing, co-operative models must play their part in delivering the Government’s promised ambition for 1.5 million new homes by providing homes that people do not just live in, but have a stake in. On agriculture, we should recognise that food security is national security, and support co-operation among farmers in the same way as the US Government do. This is about delivering a level playing field and doing what is needed to deliver on Labour’s pledge to double the size of the sector. Growth is critical, but growth must be shared by everyone who contributes, in every community across the country.
The co-operative model was born when ordinary people said that enough was enough, chose to build something better for themselves and their community, and recognised the benefit of the shared dividend that would follow. That same spirit of collective action is exactly what our country needs again. Last week, alongside Joe Fortune from the Co-operative party and Paul Gerrard from the Co-operative Group, I joined the Co-operative Group’s national members’ council in Manchester, chaired by Denise Scott-McDonald. The sense of purpose, partnership and hope was absolutely inspiring. People across the country want to do more to collaborate and to create new enterprises, not because it is fashionable but because it is instinctive to them. Let us make this the decade when co-operation again becomes a defining force in rebuilding Britain from the bottom up: politics done with people, as it always should be.
The credit unions offer a wonderful service: a community-oriented alternative to commercial banking that retains financial value within the community. As we all know, community is at the heart of everything, as it should be and as this debate will indicate. Portaferry Cohousing undertakes fantastic work in housing and accommodation. Residents are involved in the design and the ongoing management of a small development and its communal spaces. That is crucial to the co-operative sector, as members collectively own and participate in the governance of their housing environment, rather than simply being tenants of a large developer or landlord. It is co-operatives at their best, doing what they do for their members and enabling them to be part of that.
There must be more financial backing for the sector, including for training and support systems to encourage more people to avail themselves of co-operatives’ services to protect their finances and communities. Co-operatives are a wonderful thing, and this debate encapsulates my feelings towards them and those of others who will speak shortly.
I conclude with this: the co-operative sector is a people-first movement rooted in fairness, equality and opportunity. In Northern Ireland, co-operatives offer real solutions—from finance to housing support. However, for this sector to thrive, Government support is essential through funding and education that recognise the challenges the co-operative sector can, does and will face. We can build a sector that is inclusive and resilient, where ownership is shared and voices are equal. I look to the Minister for a commitment that he will continue to do just that.
Co-operatives reflect the values that we hold dear: self-help, democratic ownership and giving back. Across housing, agriculture, energy and retail, co-ops provide long-term stability, inclusive employment and ethical business practice. They fill the gaps that the traditional models often leave behind. I have seen that first hand; it will be no surprise to anybody that I am going to mention Leigh Spinners Mill—I mention it often. During my sabbatical years, in between being elected, the once-disused red-brick giant has become a thriving hub of creativity and enterprise. Leigh Film Factory, which is based inside, born from an empty space, shows what happens when working class towns back creativity and reclaim their stories. That is community wealth in action.
Nationally, there are 131,000 social enterprises in the UK, with a turnover of £78 billion and a workforce of 2.3 million. They outperform traditional businesses in growth, innovation, job creation and reducing inequality. They also better reflect the country that they serve: they are in our communities, with more women and diverse leaders at the helm. These organisations align perfectly with the Government’s vision of local empowerment, encouraging communities to take ownership of their spaces and their futures.
However, as we have heard from my hon. Friend the Member for Oldham West, Chadderton and Royton, for many navigating the world of finance business advice and investment remain a challenge. We all recognise that these are complex areas, and progress requires co-ordination across Departments and sectors. That is why I welcome the manifesto commitment to double the size of the co-op and mutual sector and the forthcoming call for future evidence on co-operative growth. That is an opportunity to shape a joined-up approach that helps co-operatives, social enterprises and community interest companies to thrive. Supporting them means supporting our communities from the ground up, rebuilding pride, creating opportunity and putting ownership back where it belongs: in the hands of local people.
More widely we see the return of co-operative ambition after a generation of consolidation. It is good to see that happening, with the Co-op Bank coming back into the mutual fold and merging with the Coventry Building Society; with Nationwide expanding with the takeover of Virgin Money; and with the Co-operative Group adding more members year on year. I join my hon. Friend the Member for Oldham West, Chadderton and Royton in paying tribute to my good friend Joe Fortune and also Shirine Khoury-Haq, chief executive of the Co-operative Group, for their sterling work on behalf of the movement.
We should all remember that the movement started many years ago from co-operative principles. A few months ago I attended the Co-op congress in Rochdale town hall with my hon. Friend the Member for Rochdale (Paul Waugh). Rochdale was the birthplace of a movement, with the power of 28 pioneers organising against the odds and today still a living force for social and economic justice in all of our communities. The Rochdale principles still stand tall in the world.
I am proud to be part of a Government with ambition for the co-operative sector: a clear commitment to double the size of the co-operative and mutual sector and to support social enterprises, as my hon. Friend the Member for Leigh and Atherton (Jo Platt) said. Such ambition has not been seen by Whitehall before. With ambition will come challenges. It is not the role of Government to build co-operatives, but it is the role of Government to ensure there is not a block to growth. Co-operative activity, as we have heard, spans many sectors and many Government Departments. With that ambition, we also know it will bring the challenges of how cross-Government working supports it. We know that sectors, which often work across Government Departments, struggle to find effective cross-Government working and effective time. So I welcome the announcement of a co-operative development unit as part of the Government’s pride in place plans.
Like my hon. Friend the Member for Leeds Central and Headingley (Alex Sobel), who is no longer in his place, I am an old lag of the movement who spent many years working in co-op housing and co-op development, so I welcome the fact that we now have something that will look at co-op development in housing and local government. But I say to the Minister that the unit needs to work with the Treasury, the Financial Conduct Authority and other Government Departments to deliver the reforms we need to support it.
Co-operation is living proof that our collective endeavour can be greater than our individual efforts. There is no stronger message for co-operation than the world we stand in today. We need to make sure that that message rings true in Whitehall, where all of these initiatives add up to something greater than their individual aims. These developments have happened as a result of the Government’s new focus, but it is up to all of us to ensure they deliver on those.
Finally, why does this matter? It matters because it is about ambition for our communities and also the kind of world and economy we want to live in. If this is the co-operative moment, as I believe it is, we also need co-operative ambition. We need to create the conditions in which mutuals can flourish and succeed, where communities can come together and start up their own ventures, and where destiny for our families and communities is not determined by shareholders or Government alone, but by the people themselves. This truly is a co-operative moment.
Too few people know that there are co-operative ventures across virtually every sector, and we have heard about some of those today. They range from animal health to arts and culture, childcare, finance, energy, housing, telecommunications and tourism. There is so much more we can do to increase awareness of the opportunities of co-operativism, how to access them and, indeed, how to establish a co-operative. By virtue of being a member-run organisation, access to finance can be a particular challenge. That is important, and I hope the Government will consider all options to increase access to external investment among co-ops.
I also want to mention credit unions, which play a very important role. It is important to think about what co-operatives are, but also what they are not. I was just reading about Norwich’s Wherry Dragon credit union, which has won a national award for its campaign against loan sharks. Credit unions offer an important facility to many people in different areas. They are financial institutions owned by members living in the same area, working for the same employer or having a common bond, who all hold savings in the union. Not driven solely by profit, they are relative unicorns in the financial world, but they are competing against giants that can overpower those that are smaller. We must therefore do more to support credit unions, to increase their access to finance and to support them as they take their first steps. I know the Government have already signalled their intention to do so, and I hope they will engage closely with members of the co-operative movement to achieve the best outcomes.
At the beginning of my speech, I referred to Norwich’s, and indeed Norfolk’s, history in this movement, but now I want to look to its future. With local government reorganisation and enhanced devolution on the horizon, Norwich stands to gain even more from co-operation. There are huge opportunities to provide co-operative solutions to the ownership and delivery of local services and governance—protecting public assets, empowering communities and spreading wealth fairly. I pay tribute to my hon. Friend the Member for Oldham West, Chadderton and Royton for all the work he has done on the devolution agenda. It is important that co-operativism is at the heart of that, and I hope that we will soon see more co-operatives in Norwich, Norfolk and across the nation.