UK historic turning point for co-ops and mutuals

18 November 2024

Chancellor of the Exchequer Rachel Reeves delivered her first Mansion House speech last Thursday and it contained a huge announcement for co-ops and mutuals in Britain.

The annual address to corporate Britain given by the chancellor is often used to sketch out plans for industry and is closely watched for clues on the government’s next steps on regulation. Following Keir Starmer’s election pledge to double the size of the mutual and co-op economy the industry has eagerly awaited more detail on how the government plans to deliver on that.

Good friends and UK colleagues, Mutuo, have been working with the government and industry on policy ideas. Influenced by our cross-sectoral movement in Australia and the success we have had over the past decade with transformative reforms like access to capital legislation (Mutual Capital Instruments) Chancellor Reeves made a stunning announcement in her address.

As part of the government’s pre-election pledge to support “diverse business models which bring innovation and new products to the market” the Chancellor revealed the government’s plans to set up a new mutuals and co-operatives business council made up of the country’s largest customer and member-owned firms. To be known as the Mutuals and Co-operatives Business Council, industry leaders including Nationwide Building Society, Co-operative Group, Arla and Royal London will work in partnership with UK Labour to drive growth in the sector. The government’s plans include the current Law Commission’s review of co-op law, calling for evidence into the credit union ‘common bond’ and asking regulators to report on the co-op and mutual landscape.

UK government support demonstrates backing co-ops and mutuals as a spur to competition, dynamism and consumer choice can be seen to be in the interests of the wider economy, something I will be sharing with political representatives when I am in Canberra for our Parliamentary Friends of Co-ops and Mutuals gathering this week.

And yes, the name of the new UK mutuals council is a nod to our very own peak!

Read Mutuo’s article Momentous step forward for the UK mutual and co-operative sector

Read CityAM article Exclusive: Reeves to reveal new mutual council with Nationwide and Co-op