Rachel Reeves’ plan to revive co-operatives represents an innovative play for growth, writes City MP Rachel Blake
Last night, I attended the Chancellor’s Mansion House speech, where she set out this Labour government’s vision to finally deliver the growth that our country needs. As the MP for the Cities of London and Westminster, I know just how vital stability and security are to our financial services sector, the beating heart of London’s economy.
The City generates £97bn in economic output each year, and one in every 52 British employees works here. It is an honour to represent such an important part of our national economy. The plans the Chancellor laid out last night are key to unlocking the growth we need, as are active and thriving financial and professional services. Earlier this month, we saw £63bn of investment committed by the private sector at the International Investment Summit to projects like data centres, renewable energy generation and affordable housing.
The Chancellor was clear last night – she has huge ambition for this sector and its potential to help deliver the growth our country desperately needs. Growing the economy is the only way to improve living standards for people across London and across the country. That’s why it’s been a top priority for this Labour government from day one. We are committed to growing the economy, and we are also determined to ensure that growth is inclusive and delivers for all our communities.
The potential of co-operatives
A key part of this mission is promoting diverse business models, including co-operatives. Co-operatives and mutuals are a different way of doing business. They’re owned by their members -sometimes employees, sometimes customers. But in both cases, decisions about the business and, crucially, its profits are made by members. Co-operative and mutual businesses have a huge contribution to make to our economy – they are often more resilient, more long-lasting and more equitable than traditional business models. It’s already a successful sector, spanning everything from small local credit unions to mutual giants like the Co-operative Group, Royal London, Arla and Nationwide.
Last night, the Chancellor announced three important steps forward to allow this sector to reach its full potential. Proposals to support credit unions will be vital in increasing financial inclusion in communities across the country. Asking major regulators what they are doing to support the sector will ensure that the regulatory landscape is as supportive as possible for diverse business models. And the launching of a Mutual and Co-operative Business Council, made up of the biggest member-owned businesses in the country, will work with government to promote co-operatives and their potential to drive that all-important growth.
This Labour government’s commitment to the co-operative and mutual sector isn’t limited to the Treasury either. Across government, ministers are working to find co-operative solutions to the challenges our country faces. We have committed to the biggest expansion in community-owned energy in history, with our new Great British Energy company investing in energy projects owned by local people. We have also committed to a strong new Community Right to Buy, giving communities the best possible opportunity to own and operate the community assets that are most important to them.
I believe the best economy for our city and our country is one that is rich and varied – one that includes diverse models of ownership and has a clear place for co-operative and mutual businesses to grow and thrive. That’s the vision set out by the Chancellor last night, and it is the economy we will work to build.