Co-operatives and Alternative Businesses: Local Authority Support

Alex Norris Excerpts

Tuesday 20th June 2023 Westminster Hall

[Alex Norris (Nottingham North) (Lab/Co-op)]

It is a pleasure to serve under your chairship, Mr Dowd. I refer colleagues to my entry in the Register of Members’ Financial Interests, as I am a Labour and Co-op Member of Parliament and because my wife is the assistant general secretary of the Co-operative party.

I commend my hon. Friend the Member for Hackney South and Shoreditch (Dame Meg Hillier) for securing this debate and for her leadership of it. She started by saying that there is a great need and enthusiasm in this country to move to more local models and away from top-down planning to local delivery. That was really on the money, as was her point about the huge input that the co-op sector already makes to our economy. She also referred to the frankly unrealised potential of the sector, which I will talk about shortly. However, as the theme of the debate is the role of local authorities, I thought it was wonderful that she pulled out examples from across Greater Manchester, South Yorkshire, Birmingham and her borough of Hackney where local, regional and sub-regional leaders are taking ownership and putting co-ops at the heart of their local economy and their local economic development.

I believe, and this came through in what my hon. Friend said, that we are at a co-op moment. We are showing that leadership is local and developing, but that needs to be matched—perhaps this is a theme of today’s debate—with a national commitment.

My hon. Friend was ably supported by my hon. Friend the Member for Neath (Christina Rees), who, in my head, is synonymous with her 100-plus appearances for Wales in squash, as well as with the co-operative movement in Wales. She listed a number of people who have been the backbone of that movement, but she ought to have her place in that pantheon. I knew that she would not disappoint us and would talk about the Marcora law, which is particularly germane to today’s debate.

Whether a Member is from the north-east, like the Minister, from the east midlands, like me, or from south Wales, like my hon. Friend the Member for Neath and my hon. Friend the Member for Cynon Valley (Beth Winter), a common theme is that, in recent decades, we have felt the huge loss of businesses, industries or enterprises that are at the heart of our community, and we know the absolute hole that that creates. My hon. Friend the Member for Neath, building on the Italian example, suggested a way that we can perhaps fill that hole and stop that happening. I am interested to hear the Minister’s reflections on that. Whether she is addressing the current Government or a future one, my hon. Friend will continue to press that case hard. In giving the example of Cwmpas, she made a case—this was picked up by my hon. Friend the Member for Cynon Valley—about the impact of support and input at a national level to help different models of enterprise to develop, and that that can be highly effective.

My hon. Friend the Member for Cynon Valley picked up on that theme by talking about the work of the Welsh Government and Cwmpas. However, what I also took from what she said is that the co-operative economy and co-ops’ place in the economy are as a deliverer of really important social programmes. She mentioned net zero and energy, as well as the cost of living and tackling poverty. I believe that co-ops are at the root of tackling those challenges, which is why I am a Co-operative Member, and that local authorities should act as a facilitator. I associate myself with everything that she said about Tyrone O’Sullivan. I know that a lot of pain has been felt by Welsh colleagues at his passing. For all the reasons she mentioned, his place is very much in a co-op debate, and I am glad we have had the chance to recognise that.

I will make a couple of points of my own. Efforts to support the growth of co-ops and alternative businesses are vital, because we know the difference that those business forms can make. Co-operatives, for example, put economic power in the hands of local people, and ensure that the benefits of economic growth are felt by those who help to create it. I will be interested to hear the Minister’s reflections on that, because I think that is what we are talking about with levelling up. I know that, perhaps politically, the Minister is not co-operative, but I suspect that she is by instinct. I am interested to hear her views.

Co-ops are grounded in shared values that put communities, members and workers together in the driving seat of a fairer, more ethical way of doing business, where issues such as paying a fair share of tax and protecting our natural environment are at the core of how things are done. Co-operatives are good not just for those who depend on them, but for business. They are shown to be more resilient. Co-ops are twice as likely to survive the first five years of trading than other start-ups. As my hon. Friend the Member for Hackney South and Shoreditch said, they are more ambitious, with 61% expressing a desire to grow, as opposed to 53% of businesses more generally. Where workers and members of the co-operative have a true stake and say in the success of business and, crucially, have a share in the rewards, they are more productive.

So co-ops are resilient, ambitious and productive—qualities that we so badly need in our economy, especially in these uncertain times, and also to smooth out and avoid uncertain times in future. As colleagues have said, this is already working, with 7,000 co-operatives across the country turning over around £40 billion a year. We believe that the sector can grow and that its benefits can be felt more widely by more people.

This is about a change of focus from economic growth built around low-paid insecure work that does not ride out economic uncertainty well and is concentrated in certain regions of the country. Instead, we are talking about an “everyone in” approach, providing grassroots growth, created everywhere, by everyone, for everyone, but that will not happen by chance. Colleagues have used good examples of where it has worked well. At the root of that, there has been a degree of national, regional, sub-regional or local leadership, and it requires that proactivity. I hope we will hear some of that in the Minister’s response.

For our part, we as the Opposition have an important ambition, shared with the Co-operative party, to double the size of the co-operative sector, to help build that sustainable growth. Colleagues will also have seen that our local power plan was announced by the Leader of the Opposition on Monday. Co-operation lies at the heart of that plan, which will put money and power—literally and figuratively—into people’s hands. We believe that when more people have a say and a stake, and greater ownership of the issues and decisions that matter to them, the balance of economic power shifts back in favour of people and communities—and my goodness, do we need some of that!

We have heard that local authorities and local government are taking a lead across the country. We have also heard from colleagues that local elections saw a record number of Labour and Co-op councillors elected. There are more than 1,500 such representatives across 80% of local authorities, so the case is being made at a local level more and more. However, we need to see that matched at a national level. When the Minister makes her contribution, I will be interested to hear what work her Department is undertaking, not just to support co-ops and alternative businesses in the here and now, but going forward, in terms of its ambition and belief for the sector. On levelling up, if there is anything the Minister could deliver in her role, it would be to help those sub-regional bodies—perhaps combined authorities and mayors—to deliver ownership hubs. There is clearly enthusiasm to do that.

What more help does the Minister envisage giving local authorities to ensure that they can play their role? There has been a pattern over the past decade or more of not prioritising alternative models. It has been the same old models delivering the same old outcomes. As a result, we have pent-up potential—we really need to realise that—and that plays out in Government focus and in a policy and regulatory framework that often inhibits the development of alternative models.

I hope that the Minister has heard, in contributions from colleagues and me, about the ambition and the potential, and the difference that it would make to the UK economy to unleash co-ops. We see the local leadership of this, and we now need to see some national leadership to match it.