Mutuals and Co-operatives Continue to Work Together to be a Priority for the Next Government

Monday 29 January 2024

ABCUL CEO Robert Kelly attended a Westminster roundtable this week which discussed the importance of mutuals and co-operatives. Discussions were chaired by Gareth Thomas MP and included attendance from Sir Mark Hendrick MP, Lord Naseby and Rose Marley.

“I was pleased to attend this Westminster Roundtable discussion representing British Credit Unions and the vital benefits they bring to the economy and communities. Talking with my fellow advocates of mutuals and co-operatives delivered a real sense of excitement that with more hard work, the interests of the sector could be prioritised by the next Government” said Robert.

Head of Co-operatives UK, Rose Marley emphasised the importance of co-ops and mutuals and the value they bring to the UK in a recent interview on Sky News’ Business Live. Rose is a vocal supporter of the credit union sector and through her interview she highlighted how member-owned businesses retain wealth locally and give more people ownership and control.

Rose stated that mutuals and co-operatives contribute significantly to the UK economy with figures finding the combined annual revenues equalled £87.9 billion in 2022 which is 3.5% of UK GDP. Moreover, while mutuals represent less than 1% of all UK businesses they create 1.5% of all employment. Latest statistics also suggest that new co-operatives are almost twice as likely to survive for five years than other new start-ups, and five times less likely to cease trading than other businesses.

Rose stated that because these businesses are owned and often controlled by members “This resilience comes from the decision-making process. It’s not driven by the need to get private, individual or shareholder profit. It’s driven by the needs of the customers and members of this serving.” She added that enabling legislative change for co-operatives and mutuals will “help these businesses that keep money in the UK [and] we’ll all be better off for it”.

Robert added: “As the sector continues to grow in members, loans and savings, it’s more pivotal now than ever to broadcast this wider with Government advocacy”.

Much of this discussion follows on from a collaboration between ABCUL, the Association of Financial Mutuals (AFM), the Building Society Association (BSA), Co-operatives UK and the wider credit union sector to launch the ‘Purpose of Mutual and Co-operative Business in Society’ prospectus. Details of the prospectus can be found in a recent ABCUL news story here.