Co-operative Sector: Government Support

Mark Ferguson Excerpts

Tuesday 21st October 2025 Westminster Hall

[Mark Ferguson (Gateshead Central and Whickham) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Turner. Please do not adjust your sets: I am not the Economic Secretary to the Treasury. But I am very pleased to be here on her behalf for my first stint at the Dispatch Box. [Hon. Members: “Hear, hear!”] Thank you.

I am grateful to my hon. Friend the Member for Oldham West, Chadderton and Royton (Jim McMahon) for securing this important debate. He is a huge asset not only to our party and his constituents but to the Co-operative party, which he proudly serves as chair. I must declare that I am a recently rejoined member of the Co-operative party. I did not know that I would be doing this debate when I joined, but it is a pleasure for it to have come round so soon. As so many others have done, I note the sterling work of the party’s general secretary, Joe Fortune. I also want to recognise the party’s fantastic head of politics, Caitlin Prowle, who I am sure has put a huge amount of work into this debate.

The level of interest in this topic reflects the Government’s strong support for the co-operative sector and underlines how important it is to ensure that the sector continues to grow, thereby supporting local people and communities. It also reinforces why, in our manifesto, we committed to doubling the size of the co-operative and mutual sector.

I thank colleagues from across the House for their thoughtful contributions. My hon. Friend the Member for Beckenham and Penge (Liam Conlon) talked about the importance of community housing. My hon. Friend the Member for Rochdale (Paul Waugh) talked about the Metro Moneywise credit union, which is clearly building on the legacy of the Rochdale pioneers. My hon. Friend the Member for Leeds Central and Headingley (Alex Sobel) spoke about new forms of co-operative support. It would not be a first appearance at the Dispatch Box without the hon. Member for Strangford (Jim Shannon); I thank him for his very kind words, and I know how important the co-operative sector is in Northern Ireland.

My hon. Friend the Member for Leigh and Atherton (Jo Platt) gave great examples of the importance of local leadership, including at Leigh Spinners Mill. That organisation was lucky to have her and, after a brief absence, we are lucky to have her back in this place. My hon. Friend the Member for Peterborough (Andrew Pakes) talked about a purpose-driven economy and inclusive growth. He does himself down a little, though: he is not as much of an old lag as he sometimes pretends to be.

My hon. Friend the Member for Norwich North (Alice Macdonald) talked about the breadth of the co-operative sector and the opportunities for her community presented by devolution—on which my hon. Friend the Member for Oldham West, Chadderton and Royton did such sterling work as a Labour Minister. My hon. Friend the Member for Ipswich (Jack Abbott)—I hope Ipswich coming straight after Norwich is not a point of contention—spoke about the role of the community in shaping the future of his town. That is something we on the Government side of the House are incredibly keen on.

My hon. Friend the Member for Cannock Chase (Josh Newbury) talked about one of my favourite topics: social clubs and their important role in the community. They are part of our past but, increasingly, also part of our future. We should all seek to support them, both politically and with the pounds in our pockets. My hon. Friend the Member for Rugby (John Slinger) talked about how co-operative principles can be applied to modern challenges, while my hon. Friend the Member for Bournemouth East (Tom Hayes) made the second-earliest reference, to 1862—not quite as far back as the Rochdale pioneers, but pretty good. He also mentioned Hengistbury Head Outdoors and called on local people to invest, which sounds very sensible for people in that area. My hon. Friend the Member for Cities of London and Westminster (Rachel Blake) said we are “the doers”. Not only that, but she is a doer for her constituents in a world of talkers, and we all thank her for that.

I welcome the support of the Lib Dem spokesperson, the hon. Member for Richmond Park (Sarah Olney), for the co-op sector. While I expect some disagreement with the Government, I think we can agree that this was an agreeable debate on all sides. She made the important point that co-ops are more likely to be led by women than the average for the FTSE 100. That is another mark in favour of the co-operative sector.

As for the shadow Minister, the hon. Member for Wyre Forest (Mark Garnier), he said before I started that everything that needs to be said has been said—a bit of a challenge, but I can take it on my first outing. We all welcome a new co-operator, don’t we? He joined over the course of the debate. After the Economic Secretary to the Treasury has read Hansard tonight, before bed, which I am sure she will—as we all do every night—she will write back to him on the point about the British Business Bank. The Government look forward to the Law Commission review coming out. I certainly did not expect references to the potential mutualisation of Thames Water or Icelandic trade unionism—I hope that one day both may be discussed more broadly on the Opposition Benches—but the mutualisation of Thames Water is not Government policy.

The Government are committed to doubling the size of the mutuals sector, as has been discussed. According to the 2025 co-operative and mutual economy report, there are currently over 10,000 mutual and co-operative businesses in the UK, with an annual income of £179.2 billion. What doubling means will differ for different parts of the sector.

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

This debate has focused on the business element of the co-operative sector, but could the Minister take back to the Department the work on co-operative solutions that happens in social settings? My constituency was one of the few that had riots last year. The Co-operative party’s community power work demonstrates that we can bring communities together and deal with the tensions and sense of purposelessness by giving people a genuine stake in their community so that they can shape the services they use. There is no business element to that, but the social benefit is huge. When the Minister goes back to his Department, can he implore it to look at co-operative solutions to and models for the modern tensions that we face in some communities? The co-operative movement has the answers that we are looking for.

[Mark Ferguson]

My hon. Friend intervened on my maiden speech, which is slightly irregular, and now he has intervened on my first outing at the Dispatch Box. Co-operatives have a wide variety of uses in the economy and I am sure that the Department and the Government more broadly will consider them. Their importance in community cohesion is certainly not lost on me or, I am sure, on other Members here.

On the shadow Minister’s question about cash ISAs, cash savings are important for people looking to put cash away for a rainy day, and the Government will protect that. The Chancellor has been clear that she wants to get Britain investing again so that companies can grow and so British savers who choose to can get more in return. Given that I am here merely on behalf of my hon. and learned Friend the Economic Secretary to the Treasury, I am even less tempted than usual to comment on the future Budget.

I want to acknowledge the importance of discussing the mutual sector, of which co-operatives are a huge part. According to research by Co-operatives UK, the 10,000 co-operatives I mentioned not only have £179 billion of income, but employ 1.3 million people in our economy. Britain has a rich history of mutuality, from co-operatives and community benefit societies to credit unions, mutual insurers and friendly societies. For example, this year marks the 250th anniversary of the first ever building society, which was founded in Birmingham with the principles that still guide the sector today.

The modern co-operative movement was born in Britain, as my hon. Friend the Member for Oldham West, Chadderton and Royton noted. In 1844, a small group of artisans from Rochdale came together to form the first modern co-operative, the Rochdale Society of Equitable Pioneers.

[Paul Waugh]

My hon. Friend may not be aware that four of the original 28 Rochdale pioneers were warpers and weavers from Spotland Bridge, which is where I grew up. That makes me incredibly proud of the sense of working-class ingenuity and self-help that lives on today. Directly to my hon. Friend’s point, does he not think that the most important statistic about co-ops is that co-operative start-ups are twice as likely to survive beyond the first five years as any other start up?

[Mark Ferguson]

That point is very well made, and my hon. Friend is right to be proud of his forebears, who were doughty working-class politicians and representatives of his area, as he is.

The Rochdale principles, established by the Rochdale pioneers, have formed the basis of modern ideals for the operation of co-operatives across the globe. The UN General Assembly declared 2025 to be the International Year of Co-operatives, recognising the positive impact that co-operatives have around the world.

The Government have made clear their strong commitment to supporting the co-operative sector, and we have already begun to make our commitment a reality. At her Mansion House speech last November, my right hon. Friend the Chancellor of the Exchequer announced measures to support the growth of co-operatives. That included welcoming the establishment of an industry-led mutual and co-operative sector business council, which is already providing a powerful voice for the sector. The Government have been working closely with the council to understand what the sector needs to grow further, and the council has been developing sector growth plans, which we look forward to receiving.

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

Will my hon. Friend give way?

[Mark Ferguson]

I have to make progress—sorry.

Additionally, the Government asked the Financial Conduct Authority and the Prudential Regulation Authority to produce, by the end of 2025, a report on the wider mutuals landscape, which is well under way. The Government are continuing to fund the Law Commission’s independent review of the legislation that governs co-operative societies in Great Britain, which is expected to be published later this year. That review will consider ways to update and modernise the legislation for co-operatives and community benefit societies, including on methods of raising capital, to ensure that those societies operate in a supportive regulatory and legislative environment. That is exactly the sort of access to capital that my hon. Friend the Member for Norwich North referenced. The Government look forward to reviewing the report when it is published, and will consider its recommendations closely.

Of course, our commitment to doubling the size of the sector is an ambitious target that requires a cross-Government effort, as my hon. Friend the Member for Oldham West, Chadderton and Royton rightly noted. The Treasury works closely with other Departments on achieving that ambition, and will continue to do so, and the Department for Business and Trade has also taken steps to support the sector. It has announced a call for evidence to explore how the Government can better support co-operatives, and has included co-operatives and alternative business models in its business support initiatives, such as the growth hubs and the business growth service.

The Ministry of Housing, Communities and Local Government has provided support for co-operatives in its Pride in Place strategy. Its new co-operative development unit will work closely with local and combined authorities to support the growth of local co-operative and mutual economies. Beyond those examples, Departments across Government, including the Department for Environment, Food and Rural Affairs and the Department for Culture, Media and Sport, have been considering how the co-operative sector can support their priorities. This is a united, cross-Government effort that reflects our commitment to a diverse and resilient economy with a range of business models.

As today’s discussion has shown, the Government remain committed to supporting the growth of the co-operative sector now and in the future, recognising the important role of co-operatives and mutuals in our economy. I thank all Members who spoke in this important debate—because co-operation is an essential part of rebuilding Britain.