Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has had discussions with the Secretary of State for Business, Energy and Industrial Strategy on the potential merits of increasing annual funding to develop the co-operative and mutuals sector.

The Chancellor and I meet with the Department for Business, Energy and Industrial Strategy on a regular basis to discuss a range of issues. The Government sees co-operatives as a vital part of the UK economy, delivering services that their members and local communities need.

The Government recognises that incubators and accelerators play a crucial role in helping businesses. Local Enterprise Partnerships (LEPs) and universities can support their local area through creating an environment to encourage co-operatives and mutuals to start and grow. Through the Levelling Up White Paper, the Government expects LEPs to continue to embed a strong, independent local business voice into decision-making fora, and to develop local economic strategies based on business intelligence about their area. This could include co-operative and mutual incubators and accelerators, as appropriate to the local context. As LEPs transition to new arrangements, we want to ensure that businesses, including mutuals and cooperatives, continue to be able to access the support, insights, and representation that LEPs provide, and to ensure that an independent business and stakeholder voice continues to play its vital role supporting growth in all parts of England.

The 2022-23 Local Government Finance Settlement is un-ringfenced to ensure local authorities can prioritise funding based on their own understanding of the needs of their local communities. As democratically elected organisations, local authorities are responsible for managing their budgets and making spending decisions that reflect their priorities, which may include mutuals.

The Government is committed to increasing innovation and, in turn, jobs, growth and prosperity to all parts of the UK. The UK Innovation Strategy, published in July 2021, sets out the Government’s vision to make the UK a global hub for innovation by 2035. To support delivery on the four pillars of the Strategy, BEIS is increasing funding for core Innovate UK programmes by 66% to £1.1 billion in 2024-2025. This will further help connect UK companies, such as co-operatives and mutuals, to the capital, skills and connections needed to innovate and grow.