Question to the HM Treasury:

To ask the Chancellor of the Exchequer, when she expects the (a) Financial Conduct Authority and (b) Prudential Regulation Authority to report to Parliament on mutuals.

In line with the government’s manifesto commitment to double the size of the co-operative and mutuals sector, the Chancellor announced measures to support the sector at Mansion House 2024. This included continuing funding for the Law Commission’s independent review of the Co-operative and Community Benefit Societies Act 2014 and asking the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) to prepare a report on the mutuals landscape.

The Law Commission’s review is considering ways to update and modernise legislation for co-operatives and community benefit societies, ensuring that it fits the nature and needs of these societies as well as ensuring that regulation is proportionate and effective. The Law Commission is expected to publish its final recommendations in a report and draft bill before the end of 2025. The government will then carefully consider the Law Commission’s recommendations to understand whether reform of legislation is needed to ensure these businesses are supported to grow and succeed into the future.

The government is also committed to ensuring that regulation for all mutuals remains proportionate and enables the sector to grow. That’s why the government asked the FCA and PRA to produce a report on the mutuals landscape. This is expected to be published by the regulators before the end of 2025.