Chancellor Rachel Reeves will set out plans for a new mutual council today made up of some of Britain’s biggest customer and member-owned firms, including Nationwide, Royal London and the Co-Op Group, City AM understands.
In her maiden Mansion House speech, Reeves is expected to set out a growth plan for mutually owned business as she looks to fulfil a manifesto pledge to double the size of the sector, sources told City AM.
Co-operatives and mutuals are owned by their members rather than shareholders. Across the UK, they have combined revenues of some £165.7bn.
The plans will follow a pre-election pledge by the Labour party to support “diverse business models which bring innovation and new products to the market”.
“This includes the co-operative sector, and we will aim to double the size of the UK’s co-operative and mutuals sector,” Labour wrote in its manifesto.
While the exact scope of the new advisory group is unclear, one source said it could advise ministers on how to encourage more businesses to adopt co-operative ownership models.
“The Government is committed to unlocking the full potential of the mutual and co-operative sector to support inclusive growth and will work with the sector to ensure it is fully supported to grow,” a Treasury spokesperson said.
After City AM approached Nationwide for comment, a spokesperson said the commitment will “help to create a more diverse economy and builds on the strength of our sector.”
Barry O’Dwyer, group Chief Executive of Royal London, told City AM the firm “strongly welcomes” the creation of the new council.
“The sector makes a significant contribution to the UK economy, and we look forward to working with the Government to strengthen further the mutual choice for consumers,” he added.
City AM revealed last month that a group of the country’s biggest co-operative group wrote to the business secretary, Jonathan Reynolds, demanding a seat on the council shaping the government’s industrial strategy.
In a letter seen by City AM, a group of four trade groups including the Association for British Credit Unions and Building Societies Association called for customer-owned companies to have a voice on the plans due to the “key role” they play in the UK economy.