Co-operative Sector: Government Support

Liam Conlon Excerpts

Tuesday 21st October 2025 Westminster Hall

[Jim McMahon (Oldham West, Chadderton and Royton) (Lab/Co-op)]

I beg to move,

That this House has considered Government support for the co-operative sector.

It is a pleasure to serve under your chairmanship, Mr Turner, in this important debate. I pay tribute to those leading this great movement in our co-operative societies, our mutuals and the Co-operative party, of which I am proud to be the chair. My thanks go to the national executive committee and to our general secretary, Joe Fortune, and his team for their tireless work in growing and strengthening co-operation across the United Kingdom.

This year, as we mark the UN International Year of Co-operatives, it is fitting to reflect on the difference that co-operation makes, and the extraordinary opportunities available to us. The roots of our movement run deep, back to 1844 and the Rochdale pioneers: 27 working people who, through solidarity, challenged exploitation and built something that was lasting. Their values of open membership, democratic control, member participation, autonomy and education all remain a living framework for economic democracy today. If their call to give working people power and a voice was important then, I think we can all agree that that call is ever more urgent today.

[Liam Conlon (Beckenham and Penge) (Lab)]

As my hon. Friend will know, the co-operative movement is a pillar of ethical business in Britain—owned by its members, rooted in its communities and committed to fairness. It includes the multiple Co-op stores that we have in Beckenham and Penge, which not only provide good jobs and affordable food but reinvest in local causes. Does he agree that it is important that we champion and expand co-operatives as part of building a fairer, more democratic economy?

[Jim McMahon]

I think a lot of people in Britain feel as though it does not matter what they do, how hard they work or how big their contribution is; they are just not able to make ends meet or get on in life. The communities where they live have been incrementally eroded and hollowed out, and they do not feel like they are getting on and doing well.

The founding principle, if we take ourselves back to Rochdale and towns like Oldham, where this is part of our heritage, history and identity, was a sense that if we build something together, we share the dividend that comes from it—that we redistribute the value that we create in order to build an even stronger community. I think we observe a country and economy where the wealth that we create is taken off to foreign lands and international investors more than it is reinvested back in the local community. Co-operation is of course about power, but it is also about place and identity, and the co-operative movement is central to that.

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to serve under your chairship, Mr Turner. I thank the hon. Member for Oldham West, Chadderton and Royton (Jim McMahon) for securing this debate. The hon. Gentleman is right that co-operatives are incredibly important, including in Northern Ireland. I will give some examples from my constituency.

I am sold on the co-operative idea because it brings opportunity to those who might not have such opportunity in normal life, and it is really important that we do that. The co-operative sector is of course deeply rooted in local community and aims to reinvest in local services, to support goals and to help people elevate themselves from where they are to better, and because of that we should encourage it in every way that we can. I look forward to giving the local perspective from my constituents on how the co-operative sector goes above and beyond to help and train local people.

Our co-operative sector carries a wide range of economic and social benefits both for its members and for the wider community. Co-operatives are a worthwhile alternative to traditional business models. They give a different perspective, give a different opportunity and enable people to better themselves. In my Strangford constituency, they have an impact. We have the Newtownards credit union. The hon. Member for Oldham West, Chadderton and Royton mentioned credit unions and we have buoyant credit unions in Newtownards, Portaferry and Kircubbin.

The Newtownards credit union was established in 1993 and serves constituents throughout the Ards and North Down borough council area. The credit union is a member-owned financial co-operative, meaning that people living or working in the area can save and access loans. I remember when a credit union was started in Greyabbey, which then transferred to Newtownards. The first thing I did when my boys were younger was to start a credit union account for them, both to support the credit union and to give my boys an idea, at a very young age, about saving money—helping themselves while also helping others, because that is what co-operatives do.

The credit unions offer a wonderful service: a community-oriented alternative to commercial banking that retains financial value within the community. As we all know, community is at the heart of everything, as it should be and as this debate will indicate. Portaferry Cohousing undertakes fantastic work in housing and accommodation. Residents are involved in the design and the ongoing management of a small development and its communal spaces. That is crucial to the co-operative sector, as members collectively own and participate in the governance of their housing environment, rather than simply being tenants of a large developer or landlord. It is co-operatives at their best, doing what they do for their members and enabling them to be part of that.

[Liam Conlon]

I have always wanted to intervene on the hon. Member—the shoe is on the other foot. He mentions Portaferry; my dad is from there. It is where he was born, went to school and learned his trade as a carpenter before moving to Britain. The project the hon. Gentleman mentions is very special—it is the first cohousing project in Northern Ireland and I go there quite a lot. I have seen it; it is intergenerational, mixed-income and run by the community. Is not Portaferry Cohousing a fantastic example of how co-ops can keep decisions local, build trust and create housing, jobs and services that fully reflect the values and priorities of the local community?

[Jim Shannon]

I absolutely agree. I spoke to the hon. Gentleman beforehand; I was fairly sure that he would come up with a Portaferry connection to the debate, because he has family connections down there. I am very pleased to see him doing so well. He had to leave Portaferry to come here and do well, but those who stayed there are doing well too. I thank him very much for that intervention and wholeheartedly support it. He has summed things up really well. That is what Portaferry Cohousing does: gives people a vision for the future and a better place in life.

I also admire the work of the Ards community network, the third group I wish to speak about and one I have discussed in the House before. The network is a voluntary and community sector organisation that upholds and supports local community groups and facilitates training for development. It is truly wonderful. I am aware of the work undertaken by Cathy Polley, the lady who runs it, taking the time to instil co-operative values and shared goals for the betterment of the community. That is a third example of how co-operatives work so well in my constituency of Strangford, and indeed across many parts of Northern Ireland.

I understand that the Government have plans to double the size of the mutual sector. I am pleased at that news, as we must endeavour to encourage social value while also increasing business performance. Co-operatives UK has said that

“the planned changes do not go far enough in enabling the sector to raise finance”,

which may cause some problems. When the Minister responds, can he tell me what discussions he has had with co-operatives on this issue? Have the Government gone far enough, and if not, why not? First of all, as I should have done at the beginning—apologies for not doing so—I welcome the Minister to his place and wish him well in his new role. He is there because he is the right man for the job, and we all thank God for that.

There must be more financial backing for the sector, including for training and support systems to encourage more people to avail themselves of co-operatives’ services to protect their finances and communities. Co-operatives are a wonderful thing, and this debate encapsulates my feelings towards them and those of others who will speak shortly.

I conclude with this: the co-operative sector is a people-first movement rooted in fairness, equality and opportunity. In Northern Ireland, co-operatives offer real solutions—from finance to housing support. However, for this sector to thrive, Government support is essential through funding and education that recognise the challenges the co-operative sector can, does and will face. We can build a sector that is inclusive and resilient, where ownership is shared and voices are equal. I look to the Minister for a commitment that he will continue to do just that.