Commons Sense

House of Commons · General Debate

Co-Operatives (Permanent Shares)

29 March 2023 · 1 other contributor

Opened by Gareth Thomas Labour (Co-op) Harrow West

HousingBusiness & TradeLocal Government

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Gareth Thomas raised concerns about co-operatives (permanent shares) in the House of Commons. Other MPs contributed to the debate.

Key points

  • Permanent mutual shares could help the co-operative and mutual movement double in size.
  • Mutuo estimates the Government could help raise 13 billion over five years with permanent mutual shares.
  • Housing associations could raise over 10 billion for building social and affordable homes.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Gareth Thomas Labour (Co-op) Harrow West

Permanent mutual shares are the rocket fuel that would help the co-operative and mutual movement to double in size. The Co-op party seeks this ambition, which is now also supported by the Labour party. These shares offer a source of venture capital for housing associations, agricultural co-operatives, employee-owned businesses, and mutual insurers without requiring demutualisation or changing democratic governance. According to Mutuo, an independent think-tank, the Government could help raise £13 billion over five years using permanent mutual shares. Had these been available to Liverpool Victoria, they would have avoided demutualisation and sale to Bain Capital. John Lewis's challenges highlight the need for better capital-raising options. This change in law could galvanise up to £1.2 billion to drive investment across various sectors. Housing associations could raise over £10 billion for building social and affordable homes, potentially financing between 60,000 and 90,000 new homes. Building societies have already issued core capital deferred shares worth more than £1.3 billion without altering governance or control.

Other contributors (1)
  • Gareth Thomas Lab Co-op Harrow West

    Permanent mutual shares provide an opportunity for agricultural co-operatives to invest in British farming and fishing, as well as environmental futures. In retail cooperatives, such a slight change could galvanise over £1.2 billion to drive investment in challenging markets. Housing associations can raise significant funds for tackling mould, improving building safety, and meeting environmental standards, potentially raising up to £10 billion. Ministers have known about the potential benefits but lack political will to implement these measures.

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