AUGUST 2018

HOW DO WE DOUBLE
THE SIZE OF THE UK’S
CO-OPERATIVE ECONOMY?
By Miles Hadfield
Co-operative ownership models can provide an alternative to the
UK’s “broken” neo-liberal economy, says a new report – but a “hostile”
economic and legislative environment is holding this back.
Co-operatives Unleashed – an independent report from the New
Economics Foundation (NEF) – calls for a radical new framework to
remedy the situation. This includes a Co-operative Economy Act,
a co-op development agency for England and Northern Ireland, and
a “John Lewis law” compelling larger private companies to transfer a
proportion of profits into a worker- or wider stakeholder-owned trust.
The report, commissioned by the Co-operative Party to look at how
a Labour government could meet its manifesto commitment to double
the size of the UK’s co-op sector, warns that since the economic crash
of 2008, the UK has struggled with weak growth, stagnant wages and
productivity, low investment and rising inequality.
“The broken economy has lumbered on zombie-like, leading to
greater inequality and a growing political tension between a relatively
narrow, elite group of winners and those whose living standards have
stagnated,” it says.
Meanwhile, there are rising challenges brought by new technology,
an ageing population, changing patterns of work and environmental
problems. Co-ops offer solutions to this, the report says, because they
are purpose-driven, democratic, accountable and have proven more
resilient and productive than conventional businesses.
Speaking at the launch of the report at Parliament on 3 July, Co-op
Party general secretary Claire McCarthy said she hoped it would be a
“real resource” for the movement and would “fire the starting gun” for a
transformation of the economy.
In the report, authors Mathew Lawrence, Andrew Pendleton and
Sara Mahmoud call not just for a doubling of co-op turnover, but for a
“profound transformation in business ownership”.
Below: The report looks at ways to grow the co-op sector
They warn that co-ops are being held back
by “an absence of legislation and policy,
institutional support, advice, incentive
and promotion.
“With an economy that does nothing to help
co-ops thrive and everything to create a hostile
environment for models of co-operation, it
is unsurprising that the UK has one of the
smallest sectors of any country,” they add.
The report suggests five interlocking steps to
remedy the situation:
• A new legal
framework for
co-operatives
• Finance that serves
the co-operative
agenda
• Deepening co-op
capabilities
through a
Co-operative
Development
Agency
• Transforming
business ownership
• Accelerating
community wealth
building initiatives
34 | AUGUST 2018