UK Mutuals Review Published

22 December 2014

The UK should emulate its major competitors by fostering a greater role for mutual business in key areas of the economy, finds the Mutuals Policy Review, published in the UK on Friday.

The Review finds that a bigger role for mutuals in the finance sector would increase diversity and choice in financial services, more employee ownership would be beneficial in enabling a share of the rewards of work, and a partnership between the government and the public would increase investment in the growing economy.

These are just some of the 37 policy recommendations contained in the Hunt Review, which looks at how mutually owned business can play its full part in Britain’s future.

Peter Hunt, the author of the BCCM’s Blueprint for an Enterprising Nation, was commissioned by UK Labour to produce this independent report on the role of co-operatives and mutuals in the economy.

Peter Hunt said:

“All of our major economic competitors, from the U.S. through the European Union to the Far East, make better use of mutually owned business to drive economic growth and spread wealth.”

The question to be answered now is: Will our politicians show similar vision?

The Government has recognised that mutuals can play a greater role in public service delivery in supporting the BCCM’s White Paper on public service mutuals, there’s also been recognition of the importance of mutuals in a more competitive financial system and in agriculture in the Government’s recent inquiries. This augurs well for member owned businesses here but what we’re looking for is unequivocal support and awareness of the value of co-operatives and mutuals from all parties.

The BCCM’s National Mutual Economy Report shows how important the co-operative and mutual sector is in the Australian economy, with the sector contributing close to 7% of Australia’s GDP when including all member-owned businesses and the industry superfunds. Taking out the superfunds, the Top 100 co-operatives in Australia still turned over a  healthy $25 billion in 2013.

As Peter Hunt has pointed out, “We know that greater diversity of business types will help to protect our economy from damaging shocks… where business operates in the interests of customers and employees, it deserves the support of politicians. There is a positive role for the…Government in ensuring that mutuals can play their full part in our economy and society.”