Co-operative Sector: Government Support

John Slinger Excerpts

Tuesday 21st October 2025 Westminster Hall

[Josh Newbury (Cannock Chase) (Lab)]

It is a pleasure to serve under your chairship, Mr Turner. I congratulate my hon. Friend the Member for Oldham West, Chadderton and Royton (Jim McMahon) on securing this important debate and his impassioned opening speech. I can think of no greater or better-informed champion of our co-operative sector. Although he is a huge loss to the Front Bench, he is our gain in this debate.

I associate myself with the remarks about the incredible work of the Co-operative party, of which I have been a proud member since the age of 18, and Co-operatives UK. The co-operative and mutuals sector is one of the UK’s quiet success stories, with an economic contribution seven times greater than its share of the business population. It is not a sector that is standing still. The number of employee-owned businesses has trebled in five years, and the number of community-owned pubs has grown by 51% in the same period, bucking wider high street trends.

Why does that matter? Because co-operatives are more resilient, more likely to pay the minimum wage and simply more inclusive. In my constituency of Cannock Chase and across the country, we see that in community energy groups, credit unions, housing co-ops and the pub that stays open because the community refused to let it call last orders for the final time. Co-ops root wealth locally and give people genuine power over the things that shape their lives.

In my patch, for example, 10 years ago, under a Labour and Co-operative council, Chase Community Solar partnered with Cannock Chase district council to install solar panels on 314 council-owned bungalows, cutting the bills of tenants by between one third and a half. Five years later, after becoming a Labour and Co-operative councillor, I was proud to be one of the cabinet members who signed off on an investment that enabled a further collaboration with Chase Community Solar, that time alongside the charity Beat the Cold, to install batteries to make even more clean energy and cut bills even further.

[John Slinger (Rugby) (Lab)]

I declare an interest as a member of the Co-operative party. My hon. Friend is speaking about renewable energy. Does he agree that one benefit of the co-operative movement and principles is that it can be innovative for local communities? A constituent of mine approached me about a problem faced by people living in flats: they do not have driveways and cannot charge electric vehicles at a good rate. It strikes me as a good example that a co-operative approach could help that large section of the community gain access to EVs, which would be socially useful and progressive for them, society and the environment. That is innovation in the interest of the entire community.

[Josh Newbury]

My hon. Friend has given us a prime example of how thinking about problems differently and more collaboratively is rooted at the heart of co-operatives. The roll-out of EVs to people who do not have a driveway and perhaps do not have ready access to charging infrastructure is one of the many challenges that the Government are facing in the move towards net zero. It is a prime example of how we can use co-operative principles to tackle a problem in a different way that helps the community to benefit.

Similarly, I want to make sure that our local working men’s clubs are given their due, such as those in Cannock, Rugeley, Hednesford, Chadsmoor and my home village of Norton Canes, where they remain vital community hubs. Those clubs embody co-op principles, offering social support, fostering local connections and supporting grassroots initiatives. They are living examples of how member-driven organisations can enrich community life.

As a member of the Environment, Food and Rural Affairs Committee, I have seen how co-ops can empower small producers to speak with a louder voice, and to secure value and recognition for their labour. Probably the best known is Arla, owned by more than 3,000 dairy farmers and supplying a quarter of the nation’s milk, but there are many more. However, I still look longingly at many of our European neighbours and even the USA, which my hon. Friend the Member for Peterborough (Andrew Pakes) mentioned, where co-ops are far more present in the agricultural economy. It is no coincidence that they do not have much of the abject unfairness in their food supply chains that we see in Britain. I hope that is being considered by the Treasury and the Department for Environment, Food and Rural Affairs, as I believe it could unlock a huge amount of growth in rural communities that have been overlooked for far too long.

I am proud of this Government’s commitment to doubling our co-operative sector because, as my hon. Friend the Member for Oldham West, Chadderton and Royton said so powerfully, it is clear that co-ops have long been undervalued and underappreciated as part of our economy. They cradle immense potential not just to transform our businesses but to draw together our communities at a time when many have never felt further apart.

Ask an everyday passer-by what co-ops contribute to our communities, and they might answer something along the lines of: “Somewhere to buy a meal deal.” It is an irony that highlights the sector’s need for Government support in making the UK economy one in which mutuals, co-ops and community-owned businesses can thrive and play a more prominent role in national life.

I will set out three brief priorities for the Government. First, let us unlock finance by opening up the British Business Bank’s programmes to co-ops and making sure that transitional help is available so that small and medium-sized enterprises can mutualise. Reaching our manifesto commitment cannot just be about new co-ops being created; if we support the mutualisation of existing businesses, we can safeguard them and put them in the hands of the very people they serve.

Secondly, we need to shake up legislation and regulations so that co-ops are unleashed to start up, scale up and diversify. That is not asking for special treatment; all it would do is bring us into line with international best practice. That is particularly important for new and innovative co-operative models in emerging sectors.

Thirdly and finally, let us offer tailored support, at a regional level, on the nitty-gritty of start-up, conversion, governance and, of course, procurement laws, so that co-ops can compete for public contracts on the scale at which they operate. However, we must also think more broadly. There are sectors crying out for a co-operative approach, and the Government clearly have a role to play in supporting that. In social care, where quality, continuity and local accountability are critical, co-op models offer a way to put care workers and care users at the heart of the system.

In some areas of the special educational needs and disabilities sector, we see eye-watering profiteering at the expense of family and council budgets alike. A co-operative approach could provide transparency, trust and better outcomes by aligning support with the needs of families, not investors.

In housing, as we have heard, many people live in communities that are defined by shared interests and challenges, so giving tenants a real say through co-op principles could help to improve housing standards, tenant engagement and community cohesion.

Finally, looking ahead, local government reorganisation presents us with both a risk and an opportunity. As new councils are created, assets could be shared. Many of those assets are central to the identity of our communities, such as libraries, community centres and green spaces. Rather than lose them to speculative buyers or closure, the Government’s commitment to a true community right to buy, so brilliantly championed by my hon. Friend the Member for Oldham West, Chadderton and Royton, could make sure they stay in the hands of the community.

In conclusion, if we want to supercharge growth in the co-op sector, we must match its potential with political will. If we do that, we will grow not just a sector but an economy in which power is shared in Cannock Chase and every corner of the UK.