House of Commons · Westminster Hall
20 June 2023 · 5 other contributors · 10,512 words
Opened by Meg Hillier Labour (Co-op) Hackney South and Shoreditch
Responding minister: Dehenna Davison
Summarised by AI from the official record, so it can contain mistakes.
Meg Hillier raised concerns about co-operatives and alternative businesses: local authority support in Westminster Hall. A government minister responded.
Key points
Key requests to Government
The MP asks the Minister to consider setting up a central hub in Government that can provide advice on co-operatives. She also advocates for procurement opportunities open to alternative businesses such as co-ops, encouraging the consideration of social value beyond mere compliance.
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
The MP is concerned about the potential of co-operatives to deliver economic benefits, citing statistics such as 7,200 UK co-ops in 2021, employing 250,000 people and contributing 2% of GDP. She highlights the resilience and ambition of co-operative models compared to other businesses, noting they are more likely to survive for five years post-startup and have a smaller gender pay gap.
Alex Norris commended colleagues for their contributions and highlighted the need for local leadership to be matched with national commitment. He emphasised the potential of co-operatives in filling economic gaps, contributing to social programmes like net zero and tackling poverty. Alex also mentioned that efforts to support the growth of co-ops are vital due to their resilience, ambition, productivity, and ability to ensure benefits are shared among local people.
Welsh MP Beth Winter highlighted the critical role of co-operatives in shaping an alternative economic system, citing examples from her constituency and Wales. She noted that Cwmbach Co-operative was established in 1859 to alleviate poverty during a miners' strike, and Welsh Government funding has contributed £3 billion to the economy. Winter emphasized the importance of councils facilitating social innovation and called for retaining wealth within communities rather than extracting it.
Agrees with the hon. Lady's point about central Government measures addressing food poverty and emphasises the role of co-operatives in ensuring people have affordable food during the cost-of-living crisis. Chris Stephens emphasized the importance of co-operatives and social enterprises in addressing food poverty. He highlighted historical examples from his constituency, including the Govan Victualling Society founded in 1777. The Good Food Scotland organization has established six larders serving over 1,500 members, saving an average of £20 per week for families. Stephens called for a national food poverty strategy to eliminate food banks by 2030 and criticised excessive profits made by supermarkets during the cost-of-living crisis.
Paid tribute to co-operative advocates and promoted the benefits of Marcora law, a mechanism allowing workers to buy out at-risk businesses with financial support. Highlighted that Cwmpas research found 20% of SMEs face closure or succession in the next five years. Welcomed the value of co-operation and the amazing impact that co-operatives have across Wales, Scotland and England.
Commends the hon. Lady for securing the debate and leading the Public Accounts Committee, highlighting the importance of co-operatives during financial crises. Mentions a local social supermarket in his constituency that operates like a co-operative to provide affordable food.
Government Response
Dehenna DavisonIt is a pleasure to serve under the chairmanship of Mr Dowd. The Minister congratulates the hon. Member for Hackney South and Shoreditch on securing this debate, noting the importance of expanding understanding and learning from successful examples of best practice. She highlights several key points raised by MPs, including the work being done in Cynon Valley to develop a local co-operative, and mentions her interest in visiting Neath to discuss further. The Minister acknowledges the role of co-operatives in boosting growth and opportunity, referencing Co-operative UK's 2021 report which estimates that UK co-ops have a combined turnover of almost £40 billion and employ around 250,000 people. She outlines several Government initiatives, such as the social enterprise boost fund with £4.1 million in funding to support new social enterprises and early-stage organisations across six local authority areas until March 2025. The community ownership fund allows community groups to bid for up to £1 million of match funding to help them buy or take over at-risk local assets, having awarded £23.9 million to 98 projects so far. She also mentions the Co-operatives, Mutuals and Friendly Societies Bill and ongoing reviews by the Law Commission of key legislation to update it for modern times. The Minister stresses the importance of growth hubs across England, with 37 currently backed by Government funding up to £12 million in 2023-24 confirmed. She concludes that co-operatives should be seen as valued members of their community and outlines a high street accelerator pilot programme to incentivise local people to work together on ambitious plans to reinvent their high streets. The Minister thanks all Members for their contributions and will take away key issues such as assessing barriers for co-operatives in accessing government contracts, the opportunity to create a central hub for co-operative advice, and whether there is an opportunity for regional co-operative development agencies.