Co-operative Sector: Government Support
Debate between Mark Ferguson and Paul WaughWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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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.