Asked by: Marion Fellows (Scottish National Party - Motherwell and Wishaw)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of the recommendations in the report entitled, We are the rebuilders: Four co-operative offers for building back better from COVID-19, published in June 2020 by Co-operatives UK.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises the value of co-operatives, and the contribution they make to all sectors of the economy. The first phase of our economic response has seen us take unprecedented steps to support the economy through the crisis; to keep as many people as possible in their existing jobs, to support viable businesses, including co-operatives, to stay afloat, and to protect the incomes of the most vulnerable. Co-operatives, like other businesses, have been eligible for a range of Government support schemes, including the Coronavirus Jobs Retention Scheme, grants delivered by Local Authorities and business loans.
The Government has taken significant steps to support the growth of co-operatives right across the country. In 2014 the Government passed the Co-operative and Community Benefit Societies Act, to reduce legal complexity for co-operatives and community benefit societies, and at the same time increased the amount of share capital an individual member can put into a co-operative society to £100,000.
HM Treasury officials also hosted a ‘Mutuals Workshop’ with representatives from the sector in 2019, to understand the challenges faced by mutuals and how Government can help to address these.
As we start to open the economy up and we look forward, we will consider how best to support the economic recovery. We will develop new measures to grow the economy, to back businesses, including co-operatives, and to help people thrive in the new post-Covid world. We will continue to consider how we can best support the co-operative sector to reach its potential, and welcome the views of Co-operatives UK and others in the sector as we do.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will permit social impact financiers to provide fast, low interest loans under the Coronavirus Business Interruption Loan Scheme to (a) co-operatives, (b) mutual societies and (c) other social enterprises; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government has set out an unprecedented package of support for all businesses affected by this crisis, including the Coronavirus Business Interruption Loan Scheme (CBILS).
On 3 April the Chancellor extended the eligibility of the scheme so that all viable small and medium-sized businesses affected by Covid-19, and not just those viable businesses unable to secure regular commercial financing, are now eligible to borrow under CBILS.
Businesses can access loans from £50,001 up to £5 million and the Government will cover the first 12 months’ interest payments and any fees. The interest rate charged on finance facilities will be set at the discretion of each lender. The Government expects that these rates will be competitive and fairly priced, taking into account the unprecedented situation businesses may currently face. All lenders must clearly explain the interest and fees that they will charge over the duration of the facility.
Co-operatives and other mutuals are eligible to borrow under CBILS, provided they meet the wider scheme eligibility criteria. The Government recognises the value of co-operatives, and officials will continue to engage with sector representatives to understand the impact of the disruption caused by COVID-19.
Any lender, including social impact financiers, who wish to become accredited should contact the BBB.
As of 13 May, there are 68 accredited lenders participating in CBILS,
and this list can be found on the British Business Bank’s website: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/current-accredited-lenders-and-partners/.
Asked by: Jonathan Reynolds (Labour (Co-op) - Stalybridge and Hyde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to bring forward legislative proposals to support businesses operating as (a) co-operatives and (b) mutuals during the covid-19 outbreak.
Answered by Jesse Norman
The Chancellor has set out a package of temporary, timely and targeted measures to support public services, people and businesses through this period of disruption caused by COVID-19.
This package includes a £10,000 cash grant to the smallest businesses, delivered by local authorities. Small businesses, including co-operatives, that pay little or no business rates and are eligible for small business rate relief or rural rate relief will be contacted by their local authority; they do not need to apply. The funding will be provided to local authorities in early April.
The package also includes the Coronavirus Business Interruption Loan Scheme (CBILS), offering loans of up to £5 million for SMEs through the British Business Bank (BBB). Where co-operatives meet the eligibility conditions, including operating within an eligible industrial sector, they may be eligible for loans under CBILS. Final decision-making on whether a small business is eligible for CBILS is delegated to the accredited lender.
The Government recognises the value of co-operatives and mutuals, and officials will continue to engage with representatives from across the sector to understand the impact of the disruption caused by COVID-19.
Asked by: Alex Sobel (Labour (Co-op) - Leeds North West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to encourage the development of co-operative businesses in Yorkshire and the Humber.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government supports mutuals and co-operatives right across the country, which provide diversity in all sectors of the economy. In 2014 the Government passed the Co-operative and Community Benefit Societies Act, to reduce legal complexity for co-operatives and community benefit societies, and increased the amount of share capital an individual member can put into a co-operative society to £100,000.
HM Treasury officials also hosted a ‘Mutuals Workshop’ with representatives from the sector in 2019, to understand the challenges faced by mutuals and how Government can help to address these.
The Financial Conduct Authority (FCA) is the registering authority for co-operative and community benefit societies under the 2014 Act. The FCA does not classify registrations by region. However, since 2010 over 1350 societies have been registered across the UK.
Asked by: Alex Sobel (Labour (Co-op) - Leeds North West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many co-operative businesses were started in Yorkshire and the Humber in each year since 2010.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government supports mutuals and co-operatives right across the country, which provide diversity in all sectors of the economy. In 2014 the Government passed the Co-operative and Community Benefit Societies Act, to reduce legal complexity for co-operatives and community benefit societies, and increased the amount of share capital an individual member can put into a co-operative society to £100,000.
HM Treasury officials also hosted a ‘Mutuals Workshop’ with representatives from the sector in 2019, to understand the challenges faced by mutuals and how Government can help to address these.
The Financial Conduct Authority (FCA) is the registering authority for co-operative and community benefit societies under the 2014 Act. The FCA does not classify registrations by region. However, since 2010 over 1350 societies have been registered across the UK.
Asked by: Vicky Foxcroft (Labour - Lewisham, Deptford)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Minister of State, Department for Digital, Culture, Media and Sport, with reference to the Answer of 23 October 2019 to Question 672, on Third Sector, when his Department plans to publish its response to the public consultation on the future definition of public service mutuals, which closed on 18 October 2019.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The response to the public consultation on the future definition of public service mutuals will be published in due course.
Asked by: Angela Rayner (Labour - Ashton-under-Lyne)
Question to the Department for Education:
To ask the Secretary of State for Education, which local authorities do not own a children's residential care home.
Answered by Michelle Donelan - Secretary of State for Science, Innovation and Technology
Regarding data on which local authorities do not own a children’s residential care home, this is a matter for Her Majesty’s Chief Inspector, Amanda Spielman. I have asked her to write to the Honourable Member and a copy of her reply will be placed in the Libraries of both Houses.
Regarding the annual cost of providing residential care to children, local authorities are required to submit annual outturn statements about their spending on children’s services, including spend on residential care, to my right hon. Friend, the Secretary of State for Education.
This financial data collection asks for local authority annual expenditure to be split across the following categories:
More information on the collection, including the provision captured within ‘residential care’, can be found in the outturn guide for local authorities at the following link:
https://www.gov.uk/guidance/section-251-2017-to-2018.
The most recent published outturn data is for 2017-18 and can be found at the following link:
https://www.gov.uk/government/statistics/la-and-school-expenditure-2017-to-2018-financial-year.
The table below shows total annual expenditure on residential care across all local authorities in England in 2017-18 across the provision categories defined above.
Total local authority expenditure on residential care by placement provider for 2017-18:
| Own provision | Private | Other public | Voluntary | Total expenditure |
Residential care | £410,665,000 | £866,003,000 | £12,587,000 | £34,582,000 | £1,323,836,000 |
Asked by: Angela Rayner (Labour - Ashton-under-Lyne)
Question to the Department for Education:
To ask the Secretary of State for Education, what the annual cost is of providing residential care to children in (a) local authority-owned homes and (b) privately owned homes.
Answered by Michelle Donelan - Secretary of State for Science, Innovation and Technology
Regarding data on which local authorities do not own a children’s residential care home, this is a matter for Her Majesty’s Chief Inspector, Amanda Spielman. I have asked her to write to the Honourable Member and a copy of her reply will be placed in the Libraries of both Houses.
Regarding the annual cost of providing residential care to children, local authorities are required to submit annual outturn statements about their spending on children’s services, including spend on residential care, to my right hon. Friend, the Secretary of State for Education.
This financial data collection asks for local authority annual expenditure to be split across the following categories:
More information on the collection, including the provision captured within ‘residential care’, can be found in the outturn guide for local authorities at the following link:
https://www.gov.uk/guidance/section-251-2017-to-2018.
The most recent published outturn data is for 2017-18 and can be found at the following link:
https://www.gov.uk/government/statistics/la-and-school-expenditure-2017-to-2018-financial-year.
The table below shows total annual expenditure on residential care across all local authorities in England in 2017-18 across the provision categories defined above.
Total local authority expenditure on residential care by placement provider for 2017-18:
| Own provision | Private | Other public | Voluntary | Total expenditure |
Residential care | £410,665,000 | £866,003,000 | £12,587,000 | £34,582,000 | £1,323,836,000 |
Asked by: Vicky Foxcroft (Labour - Lewisham, Deptford)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, with reference to page 16 of the Government’s Civil Society Strategy, what progress her Department has made on extending the support offered to public sector teams aspiring to form mutuals to other social sector organisations that wish to deliver public services.
Answered by Matt Warman
The Government currently runs a support programme for public service mutuals. Following a series of engagement events, the then Minister for Civil Society launched a public consultation on the future definition of public service mutuals on 19th July 2019. The consultation, which closed on 18th October 2019, included proposals to widen the current definition to include organisations that don’t originate in the public sector and to strengthen and clarify requirements around employee influence, independence, and the distribution of profits. We will be considering responses over the coming months.
Asked by: Baroness McGregor-Smith (Non-affiliated - Life peer)
Question to the Department for Digital, Culture, Media & Sport:
To ask Her Majesty's Government what support they are giving to social enterprise start ups in the UK.
Answered by Lord Ashton of Hyde
The Civil Society Strategy sets out a long term vision for how government will work for and with civil society, and recognises the importance of responsible business and social enterprise in creating meaningful social value for civil society and the UK economy.
To build on the UK’s reputation as a global leader in social enterprise, this government continues to champion procurement for social value, support campaigns that raise awareness about the positive impact of purposeful businesses, build the social investment market, and support social enterprises to address issues at scale.
For example, the Department for Digital, Culture, Media and Sport has committed £3million to supporting the growth and sustainability of mutuals. This includes a package of support announced in January 2018 worth £1.7million to help new mutuals to emerge and existing ones to grow. The Department for Business, Economy and Industrial Strategy has also invested over £56m in the network of 38 Local Growth Hubs across England. In 2017-18 Growth Hubs helped over 130,000 businesses, including social enterprises, and over 8,000 individuals to start-up, thrive and grow. A further £12m has been committed for 2019-20.
The Business Support Helpline also provides trusted and impartial advice to businesses across England. In 2018 it helped around 31,500 businesses, of which 65% were entrepreneurs and start-ups. The government continues to develop online support through GOV.UK, ensuring businesses including social enterprises can access the key information they need on running their business any time they wish.