- 4:42 pm
- I beg to move,That this House has considered social enterprises and community ownership.It is a pleasure to serve under your chairship, Sir John.When people make speeches about post-industrial towns like mine, they often begin in the same way: by listing everything that we have lost. They talk about decline, deprivation, and the industries that disappeared during the wave of UK deindustrialisation. To be clear, many of those things are true and it is important to acknowledge that. However, that story often misses something just as important, because although the mills closed and the factories fell silent, the people of towns like Leigh and Atherton did what they have always done: they got on with it. They supported each other, they built new initiatives and they kept their communities going. What I see in my constituency is not a place defined only by what has been lost, but resilience, creativity, and an extraordinary sense of community, built from the ground up.The truth is that towns like mine have never lacked ideas, talent or determination, but we have often lacked the structures that allow communities to own and shape their local economies. That is exactly why social enterprise and community ownership matter: they give communities tools to shape the economies and the future that they have always been building themselves.At its heart, this debate is about ownership, because ownership determines who benefits from economic activity. When businesses are owned elsewhere, profits leave, but when businesses are owned locally, wealth stays, and it circulates through the local economy, supporting jobs, suppliers and services in the places where that wealth is created. A community-owned business or co-operative is owned and controlled by local people, who collectively make decisions and share the benefits. Those businesses exist to serve the needs of the community, rather than outside investors. Social enterprises operate in a simple way. As defined by Social Enterprise UK, they are businesses that trade“for a social or environmental purpose”and reinvest the majority of their profits into that mission. Both models give communities real power to shape their local economies and their future.The tradition is deeply rooted in the north. The modern co-operative movement began with the Rochdale Society of Equitable Pioneers—a group of working people who showed that communities could come together to build businesses that served everyone.
- I thank my hon. Friend for securing this debate and for mentioning Rochdale’s crucial role as the birthplace of the co-operative movement—a global social justice movement. Rochdale council is currently acquiring a church with the intention of turning it into a community-owned cultural venue, and our Pride in Place project in Hurstead, Belfield and Smallbridge similarly has the potential to become a community-owned co-operative, but at the moment the legislation works against both: co-operatives cannot claim gift aid, they do not get proper business rate relief, and there are many, many other ways in which it works against them. Does my hon. Friend agree that the Government should be removing those obstacles from co-ops so that they can thrive?
- My hon. Friend is a great advocate for the co-operative movement, whose birthplace is in his constituency. I absolutely agree with him—there is more the Government can do to support co-operatives in all sectors.Today, the co-operative spirit is alive and well in my constituency. In towns like mine, such organisations are not simply community projects, but are becoming local economic anchors. Let me give the House a few examples. For Tyldesley is a community-led initiative that is revitalising the town through heritage restoration and community activities. In the same town, the Pelican Centre was one of the first swimming pools in the country to become community owned, and it is still thriving 14 years later. The Snug in Atherton, led by grassroots champion Rachael McEntee and supported by the Music Venue Trust, is helping to build a vibrant local cultural scene. Leigh Works is creating space for small businesses and digital innovation to flourish, while inspiring the next generation of local talent.In a speech about community ownership, I could not afford to leave out Leigh Spinners Mill. I declare an interest: I used to manage that facility. It was once a disused red-brick giant of our industrial past, and it is now a thriving centre of creativity and enterprise, providing space for community organisations and local businesses. These are not isolated stories; they are part of a growing national movement.
- I would like to add one further example from my constituency. The Rebuild Site, a social enterprise, has identified that in the construction industry a large amount of waste goes to landfill and contributes hugely to our carbon dioxide emissions. It offers a service to developers whereby at the end of a job, it takes the surplus waste back to its warehouse, sells it and donates the money to community projects. Does my hon. Friend agree that we need more examples like the Rebuild Site across the country to engender genuine pride in our towns and cities?
- That is exactly what this debate is about: hearing about initiatives that are thriving all over the country, bringing them together, and creating the support that those organisations need. I will definitely take that forward to see whether there is anything that we can do in our local area.Across the UK there are about 131,000 social enterprises—roughly one in every 42 businesses. Together, they contribute about 3.4% of GDP, employ more than 2.3 million people, and reinvest more than £1 billion each year in social and environmental causes. Community businesses alone number around 11,000, generating nearly £1 billion in income. Crucially, for every pound spent with a community business, about 56p stays in our local economies. Almost half operate in the most deprived communities—proof that this model thrives precisely where it is needed most. If we want inclusive, place-based growth, supporting social enterprises and community ownership must be part of our economic strategy.Too often the system simply is not designed for such organisations. Right now in my constituency the Pete Shelley memorial campaign, a brilliant group organising festivals that showcase incredible local artists, is working to become a social enterprise so that it can reinvest profits into helping young people access opportunities in the creative industries. But like many groups across the country, it faces real challenges in balancing its social impact with financial sustainability, navigating complex legal structures and accessing the patient capital that such models require. Without the right support, we risk losing extraordinary local potential.I want to recognise the progress that this Labour Government have already made. The English Devolution and Community Empowerment Bill introduces a landmark community right to buy, giving local people the opportunity to protect and take ownership of the spaces that matter to them most. Programmes such as Pride in Place and wider investment in town regeneration are already helping communities begin to rebuild. If we want those models to move from the margins to the mainstream, we must match community ambition with political ambition. Communities need three things to make the model succeed: first, access to patient and flexible finance; secondly, procurement systems that value social impact, not simply the lowest price; and thirdly, proper business support so that local people with great ideas are not left to navigate the system alone.
- Several hon. Members rose—
- Order. I see that lots of Members are bobbing. Given that I am going to call the wind-ups at 5.22 pm, Opposition spokesmen will have five minutes each and the Minister will have 10 minutes. You will appreciate that time is limited, so let us try to get everyone in. I suggest speeches of about three minutes.
- 4:54 pm
- It is a pleasure to see you in the Chair this afternoon, Sir John, and I thank my hon. Friend the Member for Leigh and Atherton (Jo Platt) for securing this debate. When it comes to recognising what communities need, no one knows better than local folk. I am lucky that there are so many special organisations and inspirational people positively impacting all the communities across Alloa and Grangemouth, and I would like to highlight a few today.The Newlands community hall in Grangemouth has been taken over by SeaLock Infinity, which has increased community use of the facility with various clubs, exercise classes and social activities taking place. That will improve health and wellbeing enormously. Also in Grangemouth, the local community council successfully campaigned against the cuts to Zetland Park maintenance. In the beautiful Zetland and Inchyra Parks, the Central Football Foundation has taken on the pavilions. Extensive repair works that will make the pavilions more energy-efficient are scheduled, and alongside the Young Portonian Theatre Company, they will be excellent venues for sporting and cultural community activities. Another local football club doing great things is Gairdoch United, which has taken on the Glensburgh pavilion in Carronshore and the Letham pavilion, for the advancement of public participation in the beautiful game.Across the constituency in Clackmannan, the development trust has secured the future of the town hall, where I had a ball playing indoor bowls—badly, I must admit. The trust has also taken on the library, and it plans to expand the range of activities that it offers to local people—congratulations to everyone involved. It was great to meet Janette from the Tullibody community development trust, which promotes social inclusion and healthy living, and is instrumental in creating community spirit and a sense of tremendous local pride. I also met those involved in the Tullibody Heritage Centre. Its history group has amassed an incredible collection that celebrates life in the ancient village—a fantastic way to spend a morning. Last Saturday, I popped into the Ben Cleuch Centre in Tillicoultry for World Book Day, where some of the trustees were dressed up as famous literary characters.
- 4:56 pm
- I thank the hon. Member for Leigh and Atherton (Jo Platt) for securing this debate, and for her inspiring opening speech.At a time when the Government seem to have no money and rural areas often feel overlooked, social enterprises and community-owned assets are more important than ever. I will relate that to the rural communities in my constituency, where the loss of a single pub, the village hall or another shared space is not just an inconvenience but can mean the loss of connection, support and community identity. I am constantly inspired by the amazing enterprises springing up across South Cotswolds. The Fleece Inn in Hillesley is one example. It faced closure in 2011 when the pub company went into administration, but local people stepped in to form a community enterprise. They purchased the freehold and reopened the pub in 2012 as a community-owned establishment, and today it is thriving again.In Christian Malford, the community-owned village hall plays a vital role. It hosts events, supports local groups, and creates connection in an otherwise widely dispersed rural population. One of my favourites is in Cirencester, where the new branch of The Long Table shows how community enterprise can go even further. Tom Herbert and his team have established a “pay-as-you-can” model that is based on the premise, “What would it be like if everybody had access to good food and people to eat it with?” It tackles food insecurity and rural isolation, re-imagining what a community space can be, not as charity but as dignity, equality and shared experience.Despite their success, many of these community enterprises are under pressure, with 32% of them only just surviving. Some are at risk of closure. The Christian Malford village hall is in urgent need of repair or upgrade, while community pubs often struggle to meet payroll. At the same time, demand is growing as rural populations age and rural transport gets worse. Will the Minister commit to boosting existing support, including the community ownership fund, which needs to be scaled up? We need a dedicated rural community ownership fund that provides the targeted, long-term support that communities need. A little goes a very long way when it is put in the hands of passionate, energetic and community-minded people who know exactly how to use the money to deliver the best return on investment, and to deliver for their communities.
- 4:59 pm
- It is a pleasure to serve under your chairship, Sir John. In Warrington South, I have been working closely with grassroots sports clubs like Cromwell Athletic, Crosfields and Bank Quay Bulls, and people like Ste and Bob: volunteers who give their time week in, week out, not for recognition, but because they care about their community and the sports clubs that are a part of it. They are not asking for much—just decent pitches, facilities that are fit for purpose and a fair chance to grow the game for the next generation. They want to take ownership of the very spaces that they rely on, to secure them for the long term, improve them and open up access so that more people of all ages can take part in sport.When communities have ownership of their assets, they invest in them, protect them and make them work. In Warrington, we are now exploring a local sports co-operative, bringing clubs together and giving them confidence, structure and support to take the next step into community ownership. When clubs can take ownership of their pitches, it unlocks crucial external investment from organisations such as the Football Foundation, the Football Association and the Rugby Football League, all of which I have met alongside local clubs. They are ready to back grassroots sport and improve facilities back home in Warrington. That means better pitches, improved facilities, more games being played and more young people being involved and getting active. That is what community ownership makes possible.Right now, too many communities are being held back. In Warrington, the will from clubs and partners is there, but the system is not keeping up. Local authorities simply do not have the capacity or resource to move quickly enough on community asset transfers. Good projects are now at risk of stalling. Momentum and good faith are being lost. Opportunities are in danger of slipping through our fingers. Access to funding remains a barrier, because the ambition is there locally but the tools to deliver it are not always in place.
- 5:02 pm
- It is a real pleasure to serve under your chairship, Sir John. I thank the hon. Member for Leigh and Atherton (Jo Platt) for highlighting the wonderful benefits of social enterprises and community ownership. She is back with a bang—well done to her for securing this debate. I wish to give a Northern Ireland perspective and set out some of the exceptional ways in which we are doing things there.We are at a transformative moment for Northern Ireland. For too long, our economic story was told through the lens of what we lacked or what had been lost. Today, it is a joy to tell the story of the 1,200 social enterprises across our townlands. It is a story of resilience and innovation, with £933 million in annual turnover that stays in our communities. If that is not a good story to tell, I would like to know what is.In Northern Ireland, social enterprise is not just nice to have; it is foundational. In my constituency—from the Gatelodge café at Ards hospital, which provides training and employment for young people with learning difficulties, to the Comber farmers’ market, a volunteer-led initiative that provides a platform for local producers while serving as a vital social hub for the town—we are seeing what happens when local people take the keys to their own future.Community ownership is how we reclaim our disused barracks, our closed pubs and our historic halls and turn them into hubs of health, heritage, hope and vision. To truly unlock that potential, we must move beyond the grant reliance trap. We need a dedicated regional community ownership fund tailored to the unique needs of local community infrastructure. We also need legislative support to strengthen our right to buy, so that no community asset is lost simply because the paperwork is too complex. We need progressive procurement to ensure that the £3 billion that our Government spend every year prioritises businesses that deliver real social value back to our streets.
- 5:05 pm
- It is a pleasure to serve under your chairship, Sir John. My hon. Friend the Member for Leigh and Atherton (Jo Platt) said that ownership matters. She is spot on. Ownership affects who makes decisions and who benefits from those decisions. For too long, we have had too little ownership of commercial and community assets by local people, and too much by remote organisations with no real stake in the places they operate in.Before coming to this place, I worked for years in what is called the social enterprise sector. I have never been keen on calling it a sector. One of my old mates once said to me, “Sectors are where movements go to die.” I think social enterprise is better understood as a movement. It is defined not by business structures, but by an underlying philosophy that business should work in the interests of communities and that wealth should circulate locally rather than being extracted.I will devote the rest of my speech to the new Office for the Impact Economy, which sits in the Cabinet Office. It is a positive development that shows that there is an understanding that tackling social and economic challenges requires taking a different approach. We already have a good example of the Office for the Impact Economy’s approach in the better futures fund, which currently sits in DCMS. That fund is bringing together public, private and social investment to support early intervention, and it pays for results rather than just for activity. Rather than having the Office for the Impact Economy reinvent the wheel, there is an opportunity to build on the success of the better futures fund. The Office for the Impact Economy would be better placed to take on responsibility for the existing fund from DCMS and further develop it as a cross-Government programme.The approach that sits behind the better futures fund should not be limited to one programme affecting young people, because the same model can be applied to a much wider set of complex social issues, including homelessness, street drinking, library services, outreach and high street regeneration. In all those areas, we are not suffering from a lack of effort; we are suffering from over a decade of underfunding and from a system that is often too short-term and too tied to the wrong outcomes and outputs.
- Several hon. Members rose—