Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of modern capital instruments to enable non-member investment in co-operatives.

The Government wants to ensure that the law governing co-operatives and community benefit societies supports their growth. That is why the Government is funding the Law Commission’s independent review of the Co-operative and Community Benefit Societies Act 2014. The review is considering ways to update and modernise the legislation, ensuring that it fits the nature and needs of these societies and that regulation is proportionate and effective. This includes consideration of whether shares may be issued with varying rights and to non-user investors.

Once published, the Government will carefully consider the Law Commission’s recommendations to understand whether reform is needed to support these businesses to grow and succeed in the future. The Government is committed to unlocking the full potential of the mutual and co-operative sector to support inclusive growth and we continue to engage regularly with the sector to address the barriers to the sector’s growth