"Now is the moment to work together to remove barriers and deliver on the government’s ambition to double the size of the UK’s co-operative and mutual economy."
- Rose Marley, CEO of Co-operatives UK
Earlier this week, the Mutuals and Co-operatives Together (MCT) group published a new independent report exploring financial barriers which, if removed, could unlock growth for mutuals and help deliver on Labour’s manifesto pledge to double the size of the mutual and co-operative economy.
Titled ‘Harnessing the mutual sector’s potential for growth’, the report suggests that the UK’s mutuals and co-operatives, which represent the interests of 68.8mn members, are ‘punching well above their weight’.
Furthermore, the report found that mutuals generate £35bn in direct gross value added (GVA) and support more than 1.5% of the UK economy, despite making up just 0.2% of businesses. Mutuals contribute £93bn in total economic impact, when indirect and induced effects are included, while simultaneously adding significant co-benefits in productivity, pay, resilience, community wealth, decarbonisation, and wellbeing.
In response to these findings, the MCT group, comprising Co-operatives UK, the Association of British Credit Unions Limited, the Association of Financial Mutuals, the Building Societies Association, and the Employee Ownership Association, has urged the government to address financial barriers to growth as a matter of priority.
The report recommends:
- Targeted reforms to improve access to capital for mutuals,
- Proportionate allocation of enterprise finance and business support to mutuals,
- Implementation of the Law Commission’s review of mutual law,
- Establishment of specialist investment institutions to support mutual growth,
- Support for mutual leaders, including capability-building initiatives.
“This report offers key insights that support the government’s ambition and make a huge economic and social impact. By improving access to capital and removing legal and regulatory barriers, ministers can unlock the full potential of mutuals to boost economic growth and deliver real benefits for people and communities across the UK,” explained Robin Fieth, CEO of the Building Societies Association (BSA).
He said: “With the right conditions, mutuals could grow at an annual rate of 7.2%. Achieving this would mean a 34% increase over this Parliament alone and would be double the economic growth forecast for the UK.”
Rose Marley, CEO of Co-operatives UK, added: “Mutuals and co-operatives are built to serve people, not shareholders. They are resilient, sustainable, and inherently inclusive, making them uniquely suited to address the UK’s biggest challenges. Mutuals are innovating and investing in their communities.
“The sector is ready to do more. Now is the moment to work together to remove barriers and deliver on the government’s ambition to double the size of the UK’s co-operative and mutual economy.”
