House of Commons · Ministers' Questions

Co-operative Sector

Tuesday 7 May 2024 · 3 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 1 Not answered 0

Key points

The Government acknowledges the vital contribution of co-operatives to the UK economy, noting a combined annual turnover of 41 billion in 2023.
Co-operatives are on average 10% more productive, twice as likely to survive the first five years, and have higher rates of investment compared to other private businesses.
The Minister supports allowing co-operatives to thrive without significant public subsidies, emphasizing the benefits to local economies.

Topics (select to filter)

Questions & Answers

Q1 Jim McMahon Labour (Co-op) Oldham West, Chadderton and Royton

Economy

Context

The question addresses the economic impact of co-operatives in the UK.

Question

What assessment he has made of the contribution of the co-operative sector to the economy?

Answer from Bim Afolami

The Government acknowledge the vital contribution that co-operatives make to the economy. The “Co-operative and Mutual Economy 2023” report found that co-operatives generated a combined annual turnover of £41 billion, a 3.7% increase from 2022 levels.

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Q2 Jim McMahon Labour (Co-op) Oldham West, Chadderton and Royton

Business & Trade

Context

Building on the previous assessment, the question explores ways to further support co-operatives.

Question

As the Minister outlines, co-operatives are worth £41 billion to the UK economy; moreover, they are, on average, 10% more productive than other businesses, twice as likely to survive the first five years of trading, and have higher rates of investment than other private businesses. What more can the Government do to encourage more co-operatives to thrive? Does he believe, as I do, that the creation of co-operative development agencies in every region has to be part of that?

Answer from Bim Afolami

I thank the hon. Gentleman for his point. I note his long-held interest in the co-operative sector, and the work that he does on it. So, what are the Government doing? They are doing two things specifically. First, they recently took the further step of backing the Co-operatives, Mutuals and Friendly Societies Act 2023; they also commissioned the Law Commission to review the Co-operative and Community Benefit Societies Act 2014 to make sure that co-operatives can do as much as possible to benefit the wider economy.

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Q3 Alexander Stafford

Business & Trade Local Government

Context

The question challenges the allocation of funds towards promoting co-operatives against immediate needs such as infrastructure and youth services.

Question

Over the past two years, Rotherham Council has spent £240,000 promoting co-operatives and employee ownership. Does the Minister agree that this huge amount of money would be better spent on fixing potholes and opening youth clubs, rather than on an ideological viewpoint, with no measurable outcome for the people of Rotherham?

Answer from Bim Afolami

I do not wish to comment specifically on Rotherham, but the best way of promoting co-operatives in general is to allow them to thrive as best they can, and to support their members in doing what they do best, which is to help their local economies—not necessarily through huge amounts of public subsidy, but through doing what the co-operative movement was founded to do, which is, as I have said, to support local economies and local people.