Chancellor Rachel Reeves has set out a number of economic policies in her first Mansion House speech – including the announcement of a new industry-led Mutual and Co-operative Business Council.
Sector players represented on the council will include the Co-op Group, insurer Royal London, dairy co-op Arla, and Nationwide Building Society.
The move is part of the government’s manifesto commitment to doubling the size of the co-op and mutuals sector, recognising its “invaluable role … in driving inclusive growth across the UK”.
Alongside pledges to reduce regulation of the financial services sector, boost the use of Fintech and invest in business, Reeves said in her speech: “We are launching a call for evidence on the credit union common bond and asking regulators to report on the mutuals landscape.
“And I welcome the work of Nationwide, the Co operative Group, Arla and Royal London to establish an industry led mutuals council to drive growth in the sector.”
Reeves will also be writing to the Financial Conduct Authority and Prudential Regulation Authority asking them to produce a report on the mutuals landscape in 2025.
The government says it has already laid legislation to support modernisations to the Building Societies Act 1986 and continued funding the Law Commission to conduct reviews considering how the laws governing co-operatives, community benefit societies, mutual insurers, and friendly societies can be modernised.
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Rose Marley, CEO of Co-operatives UK, said: “As part of government’s commitment to double the size of the sector, the mutual council will create an opportunity to embed more mutuals into the economy; to create inclusive growth and an equitable future.”
Joe Fortune, secretary general of Labour’s sister organisation, the Co-op Party, said: “The Co-op Party and movement have worked hard to shape the new government’s commitment to co-operative and mutual growth, and the creation of a new Co-operative and Mutual Council is another key step forward.
“By creating a supportive environment for co-ops and co-op growth, we can unlock the potential of this key sector to drive inclusive growth.”
Robin Fieth, CEO of the Building Societies Association, said: “I am delighted the chancellor has used her first Mansion House speech to demonstrate the government’s commitment to double the size of the mutual economy by announcing a package of measures to support the growth of the sector.
“A strong mutual sector provides choice for consumers and creates resilience for the financial sector. When you’re with a mutual, you can be confident that the profits are reinvested in the business and the interests of members and communities, not hived off to external shareholders.
“We are very much looking forward to working with the new Mutuals and Co-operative Council as it begins this exciting journey.”
Posting on LinkedIn, Peter Hunt from Mutuo said: “This is a momentous step forward for the UK mutual and co-operative sector.
“Mutuo has long advocated for a more joined up approach from our sector and this will build on the efforts of the Building Societies Association, Association of Financial Mutuals, Co-operatives UK and Association of British Credit Unions to work together to increase the impact of co-ops and mutuals.
“We look forward to working with colleagues and Government to take full advantage of this once in a lifetime opportunity.”
