Co-operative & Mutual Economy 2023 Report: Unlocking the Full Potential
The United Kingdom's co-operative sector is witnessing commendable growth, yet the Co-operative and Mutual Economy 2023 report underscores the need for enhanced government support to further accelerate this progress.The report eloquently advocates for the realization of the complete potential of co-operatives and mutuals within the United Kingdom.
This comprehensive report, meticulously tracking the democratic economy's development over the past year, particularly in the realm of employee ownership, serves as a testament to the dynamic landscape. The study, conducted by Co-operatives UK, provides an encompassing overview of the democratic economy, encompassing 9,113 entities, including co-operatives, employee-owned enterprises, mutuals, and building societies.
One noteworthy development highlighted in the report is Nationwide's initiative, the nation's largest member-owned organization, to distribute wealth among its members through the Fairer Share scheme. This scheme disbursed £340 million to eligible members in £100 payments, alongside the Fairer Share bond, offering a 4.75% interest rate. The report identifies key growth sectors, such as community pubs, which have expanded by an impressive 62.6% in the past five years, and co-operatives within the energy and environmental sector, exhibiting an 18.8% growth rate over the same period.
While the collective democratic economy boasts an annual turnover of £87.9 billion, the report raises concerns regarding its comparatively modest size on the international stage, coupled with a gradual growth trajectory. It calls for more robust government support, citing the favorable outcomes witnessed in Scotland and Wales, where support surpasses that in Northern Ireland and England. The establishment of a supportive legal and tax framework is deemed indispensable, with the report citing the burgeoning growth of the employee ownership trust model as a notable example.
Co-operatives, constituting 83.2% of the democratic economy, have recorded growth from 14 million members and a combined turnover of £39.4 billion in 2022 to 14.3 million members and a combined turnover of £40.9 billion in 2023. In contrast, the number of independent co-operatives in the UK increased by 1.1%, a stark contrast to the general business landscape, which experienced a 1.7% decline during the same period.
The report's conclusion underscores the immense untapped potential within the mutual economy and emphasizes the imperative to inspire communities to embrace ownership and control of their economic destinies. It also aims to empower young people and extend support to businesses and individuals at pivotal junctures, provided they receive the requisite guidance, to facilitate their transition toward democratic models.
