Social Enterprises and Community Ownership

Wednesday 18th March 2026 Westminster Hall

16:40

[Jo Platt (Leigh and Atherton) (Lab/Co-op)]

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.

[Paul Waugh (Rochdale) (Lab/Co-op)]

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?

[Jo Platt]

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.

[Ms Julie Minns (Carlisle) (Lab)]

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?

[Jo Platt]

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.

We should also continue strengthening organisations such as Locality, the Co-operative Development Unit, and Social Enterprise UK, whose expertise already helps communities turn ideas into thriving enterprises. I care deeply about this because I have seen the difference that it makes. During my time managing Leigh Spinners, I saw at first hand what happens when local people are given the space and power to shape their community’s future. I have seen with my own eyes the transformational power of national investment in community ownership. Thanks to the previous Government’s community ownership fund, places like Leigh Spinners Mill were able to step in, secure valuable spaces for working people, and turn the threat of loss into a hub of thriving businesses. When people have ownership, they have hope; when people have a stake, they have a voice. Ownership changes outcomes, and towns like mine have the talent, the ideas and the community spirit to thrive.

The Government’s industrial strategy rightly talks about driving growth across the country, but too often that growth has yet to reach towns like mine, where the backbone of the economy is not large corporations but small, locally rooted businesses. That is where social enterprise and community ownership come in: keeping wealth local, creating jobs locally, and ensuring that growth is rooted in the places that need it most. The question for the Government is simple: will we back the communities that have always built their own futures? If we do, we will build not only businesses, but stronger, fairer and more resilient communities. That is the future our towns deserve.

[Several hon. Members rose—]

[Sir John Hayes (in the Chair)]

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.

16:53

[Brian Leishman (Alloa and Grangemouth) (Lab)]

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.

Whether it is providing libraries, meeting rooms, workspaces, kids’ play areas, community gardens or warm spaces for socialising and catching up, the Tillicoultry, Coalsnaughton and Devonside development trust is doing so much good. Community asset transfers are so much more than just taking on a building: the feeling of belonging that they often provide is invaluable, and the people involved deserve every bit of credit possible.

16:56

[Dr Roz Savage (South Cotswolds) (LD)]

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.

16:59

[Sarah Hall (Warrington South) (Lab/Co-op)]

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.

If we are serious about community ownership, we need to match ambition with action. That means targeted funding to help communities to take on and improve local assets, especially in grassroots sport where the social return is so clear. It also means giving local authorities the capacity, resource and streamlined processes that they need to move at pace to support communities, not slow them down. I urge the Minister to work closely with colleagues in the Ministry of Housing, Communities and Local Government to strengthen the role of the co-operative development unit in providing the practical support that communities need to take on assets and to work across Government, including with the Department for Culture, Media and Sport, to support governance structures that enable community and fan-led ownership to succeed.

Community ownership is not just a model. It is a great way of making sure that when places grow, our communities grow with them. If we get this right, we will not only protect and improve the green spaces that matter to our constituents, but empower the clubs and people who make them such a vital part of our towns and villages.

17:02

[Jim Shannon (Strangford) (DUP)]

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.

Our sector is mature. Over half of our social enterprises have been trading for more than a decade. They are led by women—there are plenty of women here, as an indication of that. They are led by people with lived experience. They are motivated by a shared belief that profits should serve people, not the other way round. Let us not just build back; let us build ours. Let us ensure that every pound spent in Northern Ireland works twice as hard: once for the service it provides, and once for the community it empowers. The drive and the ability are there. What is needed is the support.

I look forward to the Minister’s speech. We must invest in local communities, understanding that every pound invested will not only have its returns in tax but, more importantly, fire up a generation to make their living doing something that they are passionate about and that helps their local community. We all have that desire. Working together, we can make those dreams a reality.

17:05

[Patrick Hurley (Southport) (Lab)]

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.

The better futures approach allows for longer-term investment, focuses on prevention and gives organisations the space that they need to deliver outcomes that work. If the Office for the Impact Economy can take the better futures fund model and apply it more widely to new problems, it could play a significant role in supporting social enterprises and community businesses to tackle some of the most complex problems facing our communities.

We all want economic growth. We all want growth that is felt across the country. But we need ownership of that growth. We need control and investment to be more closely connected to our communities, where people live. That is where the social enterprise movement has an important role to play.

[Several hon. Members rose—]

[Sir John Hayes (in the Chair)]

Order. Members are getting two minutes each. Let us try to get everyone in.

17:08

[Kirsteen Sullivan (Bathgate and Linlithgow) (Lab/Co-op)]

It is a pleasure to serve under your chairship, Sir John. Many of our communities have felt left behind, with their concerns about the places where they live often going unheard, so I welcome the steps that this Government have taken since July 2024 to address that imbalance. They are giving power back to local people through programmes such as Pride in Place, which is investing £20 million in the communities of Whitburn and Blackburn in my constituency.

The Community Empowerment (Scotland) Act 2015 has been in place for more than a decade, but it has not quite delivered what was hoped. Although the word “empowerment” is enshrined in the name, that has all too often stayed on paper. Ultimately, when austerity is the driver of local community ownership, that undermines the chances of success, but when it is driven by community aspiration and ambition, proactive uptake can make a real difference to a community’s renewal and can breathe new life into our high streets and town centres.

One such example is the Low Port Centre in Linlithgow. The building was declared surplus to council requirements in 2023, but by early 2024, what had started out as a project for a group from St John’s church in Linlithgow had quickly evolved into an endeavour that attracted businesses, community groups and volunteers from across the town. They secured the building and converted it into a centre for small businesses, innovators, charities, the church itself and the Linlithgow reed band. There is even accommodation there. They identified what the residents and the town needed and how their collective endeavour could deliver for everyone. That needs to change from the exception to the rule. The UK’s Government’s commitment to enshrine co-operative values in their effort to increase community ownership will support exactly that.

[Sir John Hayes (in the Chair)]

That was excellent timekeeping.

17:10

[Leigh Ingham (Stafford) (Lab)]

It is a pleasure to serve under your chairship, Sir John. I thank my hon. Friend the Member for Leigh—a different Leigh—and Atherton (Jo Platt) for introducing this important debate. Like her, I am low-key obsessed with towns, so it is a genuine pleasure to speak on the subject.

When we talk about ownership, what we are really talking about is power: the power that communities have over the places they live, the services they rely on and the futures that they want to build. Nowhere in my constituency is that clearer than in the story of a pub called the Oxleathers. In 2023, thanks to the efforts of Highfields and Western Downs community group, the Oxleathers was registered as an asset of community value. That is not an obscure, technical planning designation. In reality, it is an incredibly powerful tool. It means that the community stood up and said, “This place matters to us.”

[Patrick Hurley]

I neglected to declare an interest in my capacity as the chair of the all-party parliamentary group on the social, co-operative and community economy. Does my hon. Friend agree that all Members at this debate should attend the annual general meeting of the all-party group on Wednesday 25 March at 5.30 pm? Sadly, it will not be in a community pub, but in Room N in Portcullis House.

[Leigh Ingham]

I encourage everyone to attend that meeting.

[Sir John Hayes (in the Chair)]

I am discouraging interventions generally, but that was delightful. Carry on.

[Leigh Ingham]

The Oxleathers is not just a pub; it is a social hub in one of the most deprived areas of Stafford, hosting community events and bringing neighbours together. We do a great local quiz there, and it provides a space where people who might otherwise feel isolated can connect with others. That really matters, because when we talk about regeneration, growth or economic development, we can overlook the simple truth that communities are built around places where people come together. It is those assets that have disappeared over 14 years of austerity. Community enterprises are social infrastructure. They create pride in place, belonging and resilience.

Across Europe, energy security is becoming one of the defining challenges of our time. The events unfolding in the middle east show us how exposed households and businesses are to fossil fuel markets. I want to share an international example that I find interesting. Over the past decade, Spain has invested heavily in renewable energy and community-driven regeneration. That shift has helped to reduce the influence of gas prices on electricity bills and has made the country far less exposed to the volatility of international energy markets. That makes a massive difference, because when communities generate their own energy, they not only reduce emissions but gain control.

That exciting opportunity is now emerging in Highfields and Western Downs, because the Oxleathers—the same community asset that has been saved by local residents—is now likely to play a key role in a community solar energy plan for the area. That community has some of the highest levels of fuel poverty in Stafford. For us, community energy offers a different path. Imagine a local pub, already the heart of a neighbourhood, becoming part of a local energy network where solar generation helps to power community facilities and local ownership means that the benefits stay local. That is what social ownership can do.

We are talking about giving communities the tools to shape their own economic future. If we want towns and villages across the country to thrive, empowering communities through social ownership must be at the heart of our approach.

17:14

[Alex Sobel (Leeds Central and Headingley) (Lab/Co-op)]

I thank my fellow Co-operative MP, my hon. Friend the Member for Leigh and Atherton (Jo Platt), for introducing the debate. She served admirably in the social enterprise sector while she was resting from this place. Like her, I spent many years working in the social enterprise and co-operative sector, running Social Enterprise Yorkshire and the Humber. I hark back to a golden age—although we probably did not consider it one at the time—of social enterprise and co-operative support, which ended fairly abruptly in May 2010; I cannot quite pinpoint what could have happened in that month to make that change.

Prior to then, we had Business Link, an organisation run by the Government through the regional development agencies and funded by the then Department for Business, Innovation and Skills. It provided social enterprise and co-operative support, either directly or through regional social enterprise bodies. Such support is really important. We also had co-operative support through a similar regional mechanism funded by the Co-operative Group, which ended, a bit later, due to the issues with the Co-operative bank—we probably do not need to rehearse those in this debate.

Now there is very little support available, so I am absolutely delighted that MHCLG has announced the co-operative development unit. When I was running an organisation, we would not have had community asset transfer, or the scaling-up and development of new social enterprises, without that support; it is absolutely essential. I do not mean financial support, but support with advice, legal structures, business planning and mentoring—the whole range of support that was provided regionally. I first want to make a plea for regionalisation in the co-operative development unit.

It is then really important for Departments to work together. As I was pleased to hear my hon. Friend the Member for Southport (Patrick Hurley) raise, we need the DBT, MHCLG and DCMS to work together to provide that support. Let us do this—let us get the band back on the road and see that support being provided.

17:16

[Chris Kane (Stirling and Strathallan) (Lab)]

In constituencies such as mine, social and community enterprises are thriving. They are practical working solutions, driven by local people who care deeply about where they live. We see that in employee ownership, such as in United Auctions, where employees now have a direct stake in the business. We see it in community energy, through organisations such as the Callandar community development trust, which generates income that is reinvested back into local priorities. We also see it in communities stepping up to protect vital assets. After a devastating fire in Gargunnock, it was the community that rebuilt the village shop, securing its future.

That same spirit continues across my constituency, from development trusts transforming local buildings into community hubs to projects such as Bannockburn House, where heritage, restoration and public benefit come together. That has now inspired further work, including the Plean House and Stables initiative, which has recently gained charitable status. I wish every one of those projects success. Those examples show a simple truth: when communities are trusted and supported, they deliver.

However, I want to be clear that community enterprise is not a substitute for Government or local authorities; it must be complementary to them and, if that partnership is to work, it must be properly supported. Too often, such organisations rely on a small number of dedicated volunteers and face real pressures around capacity, funding and long-term sustainability. If we value community ownership—and we should—we must back it. These organisations are not asking to replace the state, but to work with it, and when that happens the results are clear: stronger communities, protected local assets and people with a real stake in the places that they call home.

I will quickly mention the community-owned pubs, the Black Bull in Gartmore and the Gothenburg in Fallin, which has endured for over a century. Finally, I am wearing my Stirling Albion pin badge in this debate; Stirling Albion football club became the first community-owned team in Scotland 15 years ago. Go Binos!

17:18

[Amanda Martin (Portsmouth North) (Lab)]

It is a pleasure to serve under your chairship, Sir John. I thank my hon. Friend the Member for Leigh and Atherton (Jo Platt) for securing this important debate.

Ownership matters. It shapes who makes decisions, who benefits and, ultimately, whether growth is felt in our communities or extracted from them. For too long, ownership has been weighted away from local people, and toward distant shareholders and absentee investors. That is why social enterprise, co-operatives and community-owned businesses are vital. They keep wealth circulating locally, reinvest profits into services and jobs, and give people a real stake and pride in the places they live in. We often talk about growth, but growth alone is not enough. It does not translate into stronger communities, a sense of belonging, better living standards or greater economic fairness. Social enterprises show us that there is more than one way to do business, and that there is one where success can be shared.

An example from my community that brings that to life is the once-disused bank on Cosham high street that has been transformed into the vibrant Community Kettle. That small but remarkable community-interest company is run by a diverse team, many of whom have faced personal challenges, including disabilities and medical retirement. Together, they have created something powerful. They have turned an empty space into a thriving community asset, hosting a regular “chatter caff” to tackle loneliness, quiz nights, bingo, craft sessions and educational historical talks.

The Community Kettle is a lifeline for many people in the local area and, crucially, it is rooted in the community it serves. The value that it creates does not leave; it stays in the local area. However, its journey highlights barriers that many social enterprises face. My office has supported it with casework, and with the help of Labour councillors it was eventually able to secure a grant that has helped it to continue its work—but it should not have had to fight so hard.

If we are serious about unlocking the potential of social enterprises, we must address the structural challenges they face, whether that is access to finance, clearer business and strategic support, or ensuring that the public properly recognise and promote these models. If we want truly resilient local economies, we must consider this issue. Can the Minister set out what further steps his Department and all Government Departments can take to ensure that social enterprises and community-owned businesses are not just supported, but actively prioritised as part of a growth strategy?

17:20

[Dr Simon Opher (Stroud) (Lab)]

The new community right-to-buy model has been transformative, and community ownership is at the heart of what we do in Stroud.

What I have noticed, and other Members have already pointed out, is that each organisation has to go through the same learning process to get funding. And the other thing I have noticed is that a lot of local people are willing to put funds into community ownership, but they need some sort of guarantee that those funds are safe. There is a role for some regional support in that regard.

Just in the last week, the Stratford Park lido in Stroud has been threatened with closure. I know that local people hope that local government will be able to step in and offer support. If that does not happen, though, community ownership will provide a guarantee for this much-loved community service.

As many hon. Members have pointed out, there are many pubs—including in the Stroud area—that are now moving towards community ownership, simply because capitalism does not work very well in rural areas, but assets such as pubs are deeply valued. I will mention the Rose and Crown in Nympsfield, which was recently bought by the community. I have a personal interest in that pub, because it is about 2 miles’ lovely walk from my house and I am really glad that it has remained open. Community energy is also crucial. We have a scheme now whereby solar panels can be put on schools; we are trying to get community energy in every school in our area.

However, I have campaigned for the environmental right to buy to be part of the community ownership model. I know that the Government have committed to issuing some statutory guidance, so I would like to hear some more from the Minister about that guidance. Strengthening our small towns and villages means giving actual powers to communities so that they can purchase crucial parts of our society.

[Sir John Hayes (in the Chair)]

Excellent. Thank you, everyone, for being so disciplined with your speeches.

17:22

[Sarah Olney (Richmond Park) (LD)]

It is a pleasure to serve under your chairship, Sir John, and I congratulate the hon. Member for Leigh and Atherton (Jo Platt) on her work in securing this debate.

The current landscape is extremely challenging for businesses of all kinds across all sectors, including social enterprises. I am sure that colleagues from across the House have heard from countless local businesses in their constituencies, on their high streets and in the heart of their communities, about the challenges they face, which range from the Government’s national insurance rise to sky-high energy bills and uncertainty over what the Employment Rights Act 2025 might mean for them.

Social enterprises are a major part of the UK economy, with around 131,000 social enterprises operating across the country. Together, these organisations generate around £78 billion in turnover every year, which shows that they make an impact economically as well as socially. They reinvest their profits to support social and environmental missions, with around £1 billion being reinvested annually into local communities.

The sector also provides jobs for millions, with around 2.3 million people working in social enterprises across the UK. Social enterprises are often more inclusive employers, helping people from disadvantaged backgrounds to enter the workforce and tackling barriers around gender, race, class and disability.

Community-owned organisations help to strengthen local economies by keeping wealth circulating locally and giving residents a direct stake in the services and businesses that shape their communities. However, many of these organisations face major challenges, including limited access to finance, rising operating costs and difficulty in navigating complex procurement systems. Without stronger support from the Government, many social enterprises risk being unable to scale their work, despite the enormous benefits that they bring to their communities. As we have heard from so many contributors today, community ownership also plays a growing role in protecting important local assets, such as pubs, shops, energy schemes and community centres, ensuring that they remain viable and locally accountable.

As we see unemployment at alarmingly high levels, the Government should be doing everything they can to support these organisations, which provide vital opportunities to local people. However, with employment costs rising sharply, access to a skilled workforce is an increasing issue that affects businesses of all kinds across the country. The Liberal Democrats welcomed the industrial strategy last summer and the commitment to an increase in skills and training, but the apprenticeship levy does not work: many businesses cannot get the funding that they need to train staff, and hundreds of millions of pounds of funding go unspent. We have been calling for the apprenticeship levy to be replaced with a wider skills and training levy, which would give businesses more flexibility over how they spend their money to train their staff.

It is welcome that the Government are focusing resources on training young people, but it is essential that opportunities for training and reskilling are available throughout life. The decision to defund level 7 apprenticeships for the over-22s risks limiting opportunities at a moment when it is more important than ever to provide opportunities for our young people.

More broadly, social enterprises, like many other kinds of businesses across the country, are struggling under Government decisions such as the rise in employer national insurance contributions. That continues to be the No. 1 issue raised with me when I speak to stakeholders and business owners. Small businesses in particular have been left struggling under the heavy burden of this jobs tax, and the Government must take steps to support those businesses, which are at the centre of communities and local economies. Thousands of social enterprises, which often provide community services, have felt the damaging impact of those changes. That is why I and all my Liberal Democrat colleagues have repeatedly called on the Government to reverse the rise in national insurance contributions and will continue to campaign for them to scrap this damaging policy.

The Liberal Democrats have also been calling on the Government to introduce vital reform to the business rates system. In 2019, the Conservative Government promised a fundamental review of business rates, but failed to deliver it. The current Government pledged in their manifesto to replace the system, but their recent Budget did not bring forward welcome changes for business. The Chancellor announced lower business rate multipliers, but the new, higher rateable values from the Valuation Office Agency will wipe out any benefit that businesses get from the lower multipliers, so I ask the Minister how the Government now plan to meet their own commitment in the small business strategy to introduce permanently lower business rates.

Liberal Democrats have always believed in helping individuals to be involved in the decisions that affect their lives. We believe that employee participation in the workplace, together with wider employee ownership, is important for diffusing economic power, promoting enterprise, increasing job satisfaction and improving service to customers. As we see business confidence down and unemployment up, I urge the Government to consider urgent steps to ensure that those vital policies will allow these important organisations to thrive.

17:27

[Dame Harriett Baldwin (West Worcestershire) (Con)]

It is a pleasure to serve under your chairmanship, Sir John. I, too, congratulate the hon. Member for Leigh and Atherton (Jo Platt) on securing this important debate.

I should declare that I was once on the board of the Social Investment Bank until 2012, and that my brother-in-law is chief executive of the Oversight Trust, which looks after all the dormant asset investments. I think I speak from a position of knowledge when I say how important social enterprises and community-owned organisations are. They are indeed some of the most dynamic, resilient and socially valuable parts of our economy. It was wonderful to hear so many examples from so many contributors in this debate—I will not list them all, but they were all very well described.

Social enterprise and community ownership lead to reinvestment of profits locally. They create local jobs and deliver services that strengthen communities—services that might not exist without them. These organisations are more likely to be led by women and, as we have heard, to be located in areas of higher deprivation.

I will indulge in this opportunity to mention some great examples in West Worcestershire. I think of two community-owned and volunteer-led shops: one in Alfrick, which I had the honour of opening, and another in Lower Broadheath, where I am on the record as a founding shareholder. We have the Brewers Arms in West Malvern, which is a wonderful community interest company pub. We also have some examples of organisations that used to belong to the county council, but now belong to the community. Two examples in Malvern are the Malvern Cube and Boundless Outdoors Malvern, and they are really thriving now as community assets.

As we can see from the House of Commons Library briefing, these organisations are often very much more trusted, much more responsive and more resilient than their commercial counterparts—but they do not operate in a vacuum. They need a stable economic environment, predictable costs, and a Government who understand the pressures that they face.

His Majesty’s official Opposition have repeatedly raised concerns, which we also heard from the Liberal Democrat spokesperson, the hon. Member for Richmond Park (Sarah Olney), that recent Government decisions, including increases to national insurance, unresolved business rate pressures, and the impact of the Employment Rights Act on labour costs have created additional financial strain for social enterprises, which are already operating on tight margins. Many in the sector say that those pressures are forcing them to put up prices, scale back their services, delay their investment plans or abandon plans for community asset purchases altogether. What assessment have the Government made of how the recent increases in national insurance contributions are affecting the financial sustainability of social enterprises and community-owned organisations?

Business rates are one of the biggest barriers to survival for these organisations. The Government’s approach has left many organisations facing uncertainty and rising costs, so what steps is the Minister taking to ensure that business rates policy supports, rather than undermines, community ownership and social enterprise growth? Access to finance is also a persistent challenge, so what funding is available for social enterprises and community-owned assets, and what work is being done with the UK’s leading financial sector to address the barriers that social enterprises and community-owned organisations sometimes face?

These organisations are there, ready to deliver economic and social renewal, but they face many of the same challenges as other businesses across the UK. It is time for the Government to stop making life harder for businesses of all kinds. It is time for the Government to adopt the Conservative plans for a 100% business rate relief on retail, hospitality and leisure for the benefit of our high streets.

[Sir John Hayes (in the Chair)]

Minister, will you leave a couple of moments for Jo Platt to sum up?

17:33

[The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)]

I certainly will, Sir John. It is a pleasure to serve under your chairmanship. It is also a privilege to respond to a debate with so many passionate and proud speeches on behalf of local community enterprises and charities.

I am glad to have the opportunity to congratulate Leigh Spinners on all of its success so far, to thank the Rebuild Site in Carlisle, to raise a glass to the Black Bull in Gartmore, the Fleece Inn in the Cotswolds and the Brewers Arms in Worcestershire, to tell Cosham Community Kettle to put the kettle on for me at some point when I visit, and to highlight the Low Port Centre in Linlithgow, the Oxleathers in Stafford, the Central Football Foundation in Grangemouth, and so many others that make our communities what they are. I will also abuse my position as Minister to talk about Social Blend in my constituency. It is a remarkable social enterprise that provides not just fantastic coffee and food, but employment and a sense of purpose to adults and young people with additional needs and disabilities. I recommend a visit to anyone.

What underpins this, as my hon. Friend the Member for Stafford (Leigh Ingham) intimated, is a belief that everyone has something to offer. In the words, perhaps, of Robert Owen, “There are good hearts to serve men in palaces as in cottages.” The Government are passionate about the social enterprise sector and its contribution to society.

An estimated 347,000 social enterprises are helping to meet some of the toughest challenges in our society. When Governments and markets fail, and when others walk away, social enterprises step in and fulfil the needs of our communities. To support such organisations to deliver their invaluable work, and to help them to grow and to introduce even more innovation and services, the Government have introduced several measures over the past few months.

The Prime Minister wants the Government to work differently by putting partnership with civil society at the heart of everything we do. The civil society covenant embodies the ambition to recognise the value of civil society, and for every part of Government to partner and collaborate with civil society at every level, as hon. Members have asked for. At the civil society summit in July 2025, the Prime Minister said that he would give civil society

“a home at the heart of government”

and the newly established Civil Society Council will meet quarterly in Downing Street and be supported by a dedicated team in No. 10. The purpose of the Civil Society Council is to work in partnership with Government at the highest level to drive and oversee the implementation of the covenant, helping Government and civil society, including social enterprises, to design and deliver policies and services in genuine partnership.

DCMS is taking the lead on the local implementation of the covenant through the launch of the £11.6 million local covenant partnerships fund. Hon. Members asked for more support, and the fund will support local government, public service providers and civil society organisations to work collaboratively to tackle local policy priorities and better meet the needs of communities. In recognition of the need to diversify and unlock more income for the sector, the Government are delivering several strands of work that focus on ensuring that all organisations, including some of the smallest charities, are able to continue delivering impact and, where possible, to grow their operations.

Last summer, DCMS published the Government’s first-ever dormant assets strategy, which sets out our ambition to boost the reach and impact of the scheme. The strategy sets out how we will ensure the continued good governance of the scheme and, crucially, illustrates how the next £440 million tranche of funding will be distributed. That includes £132 million to benefit young people and £87 million for social investment. Part of that money will go towards providing small, flexible and affordable loans—the access to finance that hon. Members mentioned—to grassroots organisations.

My hon. Friend the Member for Southport (Patrick Hurley) spoke with evangelical zeal about the better futures fund, based on his deep experience in this area. We announced that £500 million fund in July 2025, and it is the world’s largest outcomes fund. It will support up to 200,000 children and their families over the next 10 years, and it will bring together Government, local communities, charities, social enterprises and philanthropists to give children a brighter future.

More broadly, I want to celebrate the remarkable growth of the impact economy, with recent reports estimating that it contributes a staggering £420 billion to the UK’s GVA, amounting to 15% of our GDP. The impact economy is a diverse system of purposeful organisations and capital, with the shared aim of delivering a strong economy in which everyone benefits. Social enterprises have a unique and powerful ability to innovate and to scale solutions to the big challenges that we face as a country, and the Office for the Impact Economy will continue to support closer collaboration between these organisations and Government.

I come to the second best thing to come out of Rochdale: the co-operative sector. [Interruption.] Someone just said “Lisa Stansfield”, which I think is unfair. We have an ambitious manifesto commitment to double the size of the co-operative sector, because we see co-operatives and mutuals as the key engines of inclusive and community-focused economic activity. Several hon. Members mentioned the need to increase the support and advice for co-operatives in order to meet that commitment. I work with members of our business hub network around the country, and they often tell me that as many as one in four people coming through their doors is looking for advice on co-operatives and community interest companies.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

The Minister is rightly talking about people who want to set up co-operatives. I wonder whether he might talk to his colleagues in the Department for Education about the role that co-operative education should play in the curriculum through history, business studies, and personal, social, health and economic education. Young people need to understand what co-operative, social enterprise and mutual models look like, so that they instinctively think about setting up one when they go into the world of work, rather than being talked into doing so later on.

[Blair McDougall]

My hon. Friend makes an important point. We are having a wider conversation at the moment about how enterprise education in general should go through people’s experience in school, and the co-operative and social interest models should be part of that.

The co-operative development unit in MHCLG is helping to develop guidance and partnering with local authorities to see how we can improve access and advice. On community ownership, we are committed to communities and we are going further than ever to ensure that they have powers to take advantage of the assets that they value. My hon. Friend the Member for Stroud (Dr Opher) asked specifically about the community ownership of power. He will be aware that the local power plan announced by colleagues in the Department for Energy Security and Net Zero is designed to address the barriers to community energy ownership and is backed by £1 billion to fund those local projects.

At the beginning of the debate, my hon. Friend the Member for Leigh and Atherton (Jo Platt) asked whether the Government are willing to back local areas in taking control of the things that they value and that are important to them. I hope some of the measures that I have set out show that the Government’s answer is a resounding yes.

17:41

[Jo Platt]

I spoke very broadly about the value of social enterprise and community ownership, but to hear individual stories from across the country just shows the power that they have and their effect on us. I thank the Minister for his response and commitment to the sector, and I look forward to working with him in the future.

Question put and agreed to.

Resolved,

That this House has considered social enterprises and community ownership.

17:39

Sitting adjourned.