Labour conference: Co-ops position themselves as inclusive growth enablers
- October 2025
This response is submitted by Councillor Jim Robbins, Chair of the Co‑operative Councils’ Innovation Network (CCIN), following various discussions with member organisations and individuals. It seeks to draw on CCIN’s collective evidence base. It is not individually approved by every member council, but reflects the shared practice and learning of the Network. The CCIN is a Special Interest Group of the Local Government Association. It brings together 44 Full Council Members, 27 Associate Members and 46 Affiliate partners across the UK who are committed to putting co‑operative values into practice in local government and local economic development.
Chair of the Cooperative Councils Innovation Network
Leader Swindon Borough Council
The Government’s creation of a Co‑operatives and Mutuals Unit in the Department for Business and Trade (DBT) and the stated ambition to double the size of the co‑operative and mutual economy in the UK is welcomed.
This submission:
_____________________________________________________
Question 1. If the co-operative and non-financial mutuals sector were to grow, what do you expect the key impacts would be? Draw on evidence, where possible.
There is strong evidence that co‑operatives already “punch above their weight”:, Coops UK Response to the Government Consultations that they account for around 0.6% of UK GVA but only 0.25% of businesses, are more likely to achieve a meaningful scale (35% with 10+ employees vs 19% of UK businesses generally) and are about twice as likely
If Government’s ambition to double the co‑operative and mutual economy is backed with serious, sustained support, CCIN could expect to see the following impacts:
Economic and productivity impacts
Examples from CCIN member locations:
Social and community impacts
Examples from CCIN member locations
Environmental and place‑based impacts
Examples from CCIN member locations
International evidence from regions such as Emilia‑Romagna and Trentino shows that, over time, dense co‑operative ecosystems are associated with lower inequality, higher employment and stronger social capital.
With a clear national framework and local partnership, I believe that similar effects are achievable here.
_____________________________________________________
Question 2. We are interested in reliable data sources that evidence the impact of co-operatives and non-financial mutuals on economic growth.
From a local‑government angle, additional important sources include:
There is the opportunity for Government to work closer with Co‑operatives UK, ONS and local/regional partners to embed co‑op/mutual identifiers into existing business statistics, so that the growth of the sector and its local impacts can be properly tracked.
_____________________________________________________
Question 3. How do different types of co-operatives and non-financial mutuals drive economic growth differently?
Different models make different contributions; together they form an ecosystem:
Major employers and investors in everyday sectors such as retail, leisure, childcare, and transport.
Example: leisure and community trusts (such as Greenwich Leisure Limited – CCIN Affiliate Member) and community‑run assets supported by CCIN councils through community asset transfer and social value procurement.
Deliver higher productivity, better pay and more stable employment.
Several CCIN councils (for example, Preston, Oxford and Birmingham) have actively explored worker co‑ops and employee ownership as part of their community wealth building and inclusive economy strategies.
Enable SMEs to collaborate on procurement, marketing, skills and innovation – increasing productivity and resilience without sacrificing independence.
Examples include sector consortia in care, local food and construction supported by member councils and highlighted in CCIN’s “Growing an Inclusive Co‑operative Economy” work.
Particularly powerful in sectors like social care, energy and local development, aligning the interests of workers, users, communities and sometimes public bodies.
Greenwich’s work on co‑operative care and energy, and pilot work in other CCIN councils, is beginning to test these models in UK public‑service contexts.
The common thread is that these models combine economic performance with wider social and environmental value, and tend to root that value in specific places.
_____________________________________________________
Question 4. What data, if any, is available on the demographic characteristics – such as age, gender, ethnicity, disability, and socioeconomic status – of the management and workforce of individual co-operatives and non-financial mutuals in Great Britain?
I believe that it is understood that Systematic demographic data is limited.
Co‑operatives UK’s 2020 research on community shares investors found that:
CCIN case studies provide qualitative evidence that co‑ops can broaden participation:
There is a strong case for the Government to fund Co‑operatives UK and partners, working with CCIN councils, to build a more robust equality evidence base.
_____________________________________________________
Question 5. Start Ups
I summarise my position on question 5 around the following statements:
Strongly agree. Communities and founders rarely hear about co‑ops from mainstream advisers. CCIN councils regularly meet with groups trying to “save” an asset or start a social enterprise that have never been offered a co‑operative option. Plymouth, Rochdale and Oxford have all had to invest in awareness‑raising just to put co‑ops on the table.
Agree. Design assumptions (personal guarantees, equity stakes, standard exit routes) often make schemes ill‑fitted to co‑ops. Some local funds – for example, in Glasgow and Plymouth – show how to design finance in a co‑op‑friendly way.
Neither agree nor disagree. Founders typically have strong sector and community skills. What they lack is access to tailored, co‑op‑specific advice on governance, legal form and finance.
Strongly agree. Research* shows many advisers know little more than basic knowledge about co‑ops and Social Enterprise. CCIN councils report frequent cases where advisers either ignore or discourage co‑operative options. This is a major systemic barrier.
* Co‑operatives UK’s draft response to this call for evidence, drawing on 2018 research by Alliance Manchester Business School, finds that 45% of surveyed business advisers had no knowledge of co‑operative start‑up processes and that many advisers have either not covered, or actively discouraged, co‑operative options when advising clients
There are many success stories across the Network, but they are not visible enough in mainstream business discourse, and structured peer support is thinly funded. When it is funded – for example, through Co‑operatives UK’s Business Support for Co‑ops or CCIN Policy Labs – demand is high, and results are strong.
_____________________________________________________
Question 6. In general, do co-operatives or non-financial mutuals face any unique barriers to starting up that other types of business don’t face?
From a place‑based / community wealth building and local‑government viewpoint, the distinct barriers are:
Local government can and does mitigate some of this – for example, through local co‑operative funds, asset transfer policies and tailored business support – but national reform is required to shift the framework.
_____________________________________________________
Question 7. Do different types of co-operatives or non-financial mutual models face different barriers to starting up?
Yes – different co‑operative types face different barriers:
CCIN’s Councils’ Co‑operative Development Toolkit is designed to help councils understand and support different models appropriately, rather than treating “co‑ops” as one homogenous category.
CCIN and its Members have also had experience of delivering over 80 places of Coop Option Training. This venture was led by CCIN Member Kirklees Council, and was designed to increase the knowledge and capacity around alternative business models of the following:
The training comprises a core module around support for alternative business models and two optional models for those wanting a deeper dive.
_____________________________________________________
Question 8. Are there industry or sector-specific barriers to starting a co-operative or non-financial mutual?
Key examples from within CCIN member areas:
With clearer national signals and dedicated programmes, these sectors are where co‑ops could play a major role in delivering Government priorities.
_____________________________________________________
Question 9. Is the rationale and process for growing a co-operative or non-financial mutual the same or different for growing a business which is not a co-operative or non-financial mutual?
The business disciplines of growth are similar – understanding markets, investing wisely, and managing risk. But for co‑ops:
For councils, this means growth support, procurement and investment frameworks could and should recognise and be value-inclusive and lock in place‑based growth, not just headline turnover or valuations generating profit to be sucked out of the local economy.
_____________________________________________________
Question 10. To what extent do you agree or disagree with the following statements about growing and sustaining a co-operative or non-financial mutual: growing and sustaining is too capital-intensive for many co-operatives or non-financial mutuals
From the perspective of co‑operative councils, the main growth barriers are:
Where councils have deliberately changed their approach – for example, Oldham’s social value procurement, Wigan’s “Deal for Business”, Preston’s community wealth building and Oxford’s inclusive economy work – co‑ops and social enterprises have been able to take a larger role in local markets.
_____________________________________________________
Question 11. Are there unique barriers to growing and sustaining a co-operative or non-financial mutual which other types of business don’t face?
Explain your answer. You may wish to consider barriers to accessing capital, market share, business support and investment, public awareness, or competition with other types of business.
From a local government perspective, there are two sets of barriers:
I believe that the most important “co‑op‑specific” barriers to growth that CCIN councils see in their areas are:
Taken together, these factors mean that even successful co‑ops often hit a “growth ceiling” that comparable private firms do not face.
_____________________________________________________
Question 12. Do different types of co-operatives and non-financial mutuals face different barriers to growing and sustaining?
Yes, I believe some clear differences can be seen:
Strong at participation and productivity, but often weakest on access to risk capital. They cannot easily use personal guarantees or external equity in the same way as conventional firms. As they grow across multiple sites, they also need support with governance and management structures, which is currently hard to find.
In short, “one size fits all” growth support does not work. Different co‑operative models need different combinations of growth finance, governance support and regulatory reform.
_____________________________________________________
Question 13. Are there industry-specific barriers faced by co-operatives and non-financial mutuals when trying to grow and sustain?
From my perspective as Chair, Cooperative Council Innovation Network and Leader of our Borough Council, I do feel that there are some sectors where growth is being held back:
UK farming and food co‑ops face uncertainty about the future of producer‑organisation support; there have been news stories of uneven treatment in Defra schemes, and limited promotion of co‑operation as a productivity and resilience tool. This matters in rural CCIN areas where co‑ops could play a much bigger role in food security and land management.
Community energy co‑ops can be hampered by energy market rules, registration issues for societies and the separation of energy generation from retrofit and housing policy. There are a number of Councils such as Plymouth, Greenwich and Sunderland are trying to join these dots locally, but national frameworks do not yet make it easy.
_____________________________________________________
Q14. If you have considered mutualising, or have already mutualised, what prompted you?
The CCIN has established a Task & Finish Group in Summer 2025 to explore the future of the Network’s Legal Structure, including looking at a Cooperative Model as a potential Governance option. This work is planned to be completed after May 2026.
When talking to representatives of members’ councils, they have highlighted how they have supported mutualisation processes or co‑operative restarts, with the main local drivers being:
My experience has seen how a prompt has been a threat to viability or control (closure, sale, under‑investment) combined with local ambition to keep value in the community.
_____________________________________________________
Question 15. What do you think the impact would be of more businesses mutualising?
I believe that if more viable businesses were mutualised – through employee ownership, multi‑stakeholder co‑ops, community buy‑outs or customer mutuals – the Government could expect:
Improved productivity, higher staff engagement and lower turnover, as evidenced in UK employee‑owned businesses and worker co‑ops.
More stable, long‑term ownership focused on service quality, workforce wellbeing and reinvestment, rather than short‑term extraction.
More wealth retained and recycled locally, especially if combined with anchor‑led community wealth building, as in Preston, Wigan, Oldham and others.
Stronger “middle‑sized” firms rooted in place, able to take on public contracts and invest in skills and innovation.
Over time, a reduction in regional inequalities, more diverse ownership of productive assets and stronger social capital – particularly if mutualisation is encouraged in foundational sectors (care, food, housing, energy, transport) that matter most to everyday life.
Potentially, there are risks such as – poor‑quality mutualisations, under‑capitalisation, or transitions used as a cover for local service-provision cuts – but these are manageable with good design, adequate finance, and proper worker and community involvement.
_____________________________________________________
Q16. Attitudes to mutualisation (and Q16a – why?)
I believe that co‑operative councils see mutualisation as a practical tool – one option among several – to keep good businesses and assets in local, democratic ownership.
The evidence suggests that with better awareness, clearer pathways and a modest set of incentives, more owners and workers would seriously consider it.
_____________________________________________________
Question 17. If you have demutualised, can you explain why you did this and how the process went?
CCIN as a network has not de‑mutualised. However, I do believe that there are examples of member councils that have seen the consequences when:
From a public‑interest and local‑government perspective, these demutualisations often feel like a loss of local community wealth.
I would encourage the UK Government to explore legal reforms – such as stronger asset locks that would allow founders and members to protect common capital against short‑term pressures, while still allowing genuine modernisation where needed.
_____________________________________________________
Question 24. Is there enough tailored support for co-operatives and non-financial mutuals?
No.
From what I see as Chair of Cooperative Councils Innovation Network and Leader of a Council Borough, I feel that the picture is:
If Government genuinely wants to double the co‑operative and mutual economy, the current level and configuration of tailored support is not sufficient or well-resourced.
_____________________________________________________
Question 25. Is there support or advice you think is missing for co-operatives and non-financial mutuals?
I believe the biggest gaps that Officers who work in CCIN member Councils that experience this contact are:
_____________________________________________________
Question 26. What do you think is working well and what is working less well when it comes to how co-operative and non-financial mutual businesses access capital in Great Britain?
I think there is evidence as to what is working relatively well:
Parts that aren’t working well and need to support:
I believe that CCIN Council Members are doing what they can locally, but there is a clear need to explore national reform and partnership – including modernisation of society law and a deliberate co‑operative strand in British Business Bank activity.
_____________________________________________________
Question 27. What further support would be beneficial?
As Chairman of the Cooperative Councils’ Innovation Network, I believe there are some priority next steps:
Multi‑year schemes co‑designed by strategic authorities, councils, Growth Hubs and sector bodies, focused on sectors where co‑ops add most value to national missions – care, housing, net zero, food, local media and culture.
Co‑funded coordination of a provider network, building on Co‑operatives UK’s Business Support for Co‑ops, CCIN’s toolkits and Policy Labs and funded support provided through CCIN Members and Affiliates.
With the Potential for training and accreditation to grow the pool of specialist advisers and next‑generation co‑operative development workers. CCIN Members have had experience of in-house “Coop Option training” developed and delivered by Kirklees Council – a CCIN Full Member Council.
A pilot programme to help existing co‑ops diversify, replicate and scale, with specialist advice, peer learning and finance access.
A parallel pilot to support worker‑ and community‑led buy‑outs and restarts, making full use of emerging Community Right to Buy and similar powers.
Enabling co‑ops to pool capital and risk, co‑invest and jointly access markets – for example, co‑operative consortia in care, food, retrofit or digital.
Embedding co‑operative awareness in officer training, procurement guidance and business support, using CCIN’s Councils’ Co‑operative Development Toolkit and case studies.
_____________________________________________________
Question 28. Is there anything else you would like to share?
The two final messages I would like to leave as part of this Call for Evidence are as follows:
The evidence from CCIN members shows that when councils act deliberately, co‑ops and mutuals can and do grow in ways that support Government’s wider missions. We need to ensure that suitable resources are made available to carry these aspirations forward.
Cllr Jim Robbins
Chair, Cooperative Councils’ Innovation Network
& Leader, Swindon Borough Council