Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the financial contribution of the co-operative sector to the economy; and what estimate her Department has made of the level of growth in that sector in each of the next five years.

The government recognises the contribution of co-operatives to the economy, serving local communities and ensuring the UK has a diverse business sector.

According to Co-operatives UK, there are 7,391 co-operatives operating in the UK with a combined annual income of £42.7bn. Co-operatives serve 16.6 million members - an increase of 1.4 million (9.5%) from 2024 levels - and employ almost 240,000 people.

The government is taking steps to support further growth the co-operative sector in line with its manifesto commitment to double the size of the co-operative and mutuals sector. This includes funding the Law Commission’s independent review of the Co-operative and Community Benefit Societies Act 2014, which will consider ways to update and modernise the Act. The review is expected to be published by the end of the 2025 and the government will carefully consider its findings before responding.

Additionally, at Mansion House 2024 the Chancellor set out a package of measures aimed at supporting the growth of the broader co-operative and mutuals sector. This included welcoming the establishment of the industry-led Mutuals and Co-operative Business Council and asking the PRA and FCA to produce a report on the mutuals landscape by the end of 2025.

The Department for Business and Trade has also announced a call for evidence which will explore business support for co-operatives and non-financial mutuals.

Together, these will support the growth of the co-operative sector in line with the manifesto commitment.