The UK’s 9,300 co-operatives and mutuals have a combined income of £165.7bn, according to the latest Co-operative and Mutual Economy Report.
Produced by apex Co-operatives UK, the report sets a baseline from which the government’s commitment to double the size of the co-operative and mutual economy can be measured.
The report also reveals that co-ops and mutuals employ over 1.3 million people. Memberships of co-operatives and mutuals have also increased by 2.8% to 68.8 million.
The UK is home to 7,370 co-ops with 15.0 million members, 3.6% less than in the previous year. The report attributes this decrease to data cleansing by the Financial Conduct Authority (FCA) and claims co-operatives continue to thrive, with annual income up to £42.7bn.
According to the report, co-operative new-starts are more than twice as likely to survive beyond the first five years, with 81.2% still flourishing after five years, compared to just 39.6% for traditional start-ups.
The Co-op Group heads the report’s top 10 with an income of £11bn, followed by the John Lewis Partnership with £10.78bn, Arla Foods with £3.02bn, National Merchant Buying Society with £2.25bn and Central Co-op with £960m.
“The benchmark has been set but most importantly, this is an opportunity to realise the immense potential of co-operatives and mutuals to create a more inclusive and resilient economy,” said Rose Marley, CEO of Co-operatives UK. “Co-operatives put people first.
Related: UK Co-op and Mutuals Economy Report 2023
“Built on shared values and principles, they exist to meet the needs of their members, not just shareholders. They create a fairer distribution of wealth and more sustainable communities. With government support, we can scale these benefits across the entire economy.”
In light of these findings, the report makes several recommendations to achieve the government’s pledge to double the size of the co-operative economy – such as unlocking new options for co-ops and mutuals to raise capital from investors, communities and members; ensuring co-operative development is enabled and resourced locally and nationally; and reforming and modernising co-operative and mutual legislation.
“We need policies that create the right conditions for co-operatives to thrive,” said Marley. “These include unlocking new capital-raising mechanisms and ensuring co-operative development is resourced at local and national levels. On the 180th anniversary of the Rochdale Pioneers, the original founders of the modern co-operative movement, the time is now to invest in the power of democratic business models.”
Co-operatives and mutuals are organisations that are democratically owned and equitably controlled by their members.
“Greater Manchester has been a driver for social reform and fair business since the inception of the modern co-operative movement and this report really shows what that economy looks like in the UK today,” said the mayor of Greater Manchester, Andy Burnham. “Time and time again member-owned businesses show they can deliver productivity growth, better conditions for workers and better outcomes for consumers – all with a lower environmental impact. For all these reasons, we fully back the Labour manifesto’s ambition to double the size of the co-operative movement in this parliament.”
“As the UK’s largest co-operative, we are proud to be part of a movement that remains resilient and robust,” said the Co-op Group CEO, Shirine Khoury-Haq. “We are owned by and run for our members and our commitment to sharing power and wealth more equitably remains crucial.
“We have seen the highest influx of new member-owners in seven years at Co-op Group – and the growth in total turnover and membership across the wider sector highlights the increasing recognition of the value that co-operatives bring to communities.”
“As a Government focused on growth, I am heartened to see some of the trends outlined in this Co-operatives UK report, including the 2.9% increase in memberships to mutual and co-operative businesses, as well as the 2.6% total increase in income. I look forward to working with the sector to support the co-operative and mutual economy to thrive,” said Tulip Siddiq MP, Economic Secretary to the Treasury.