Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department is taking fiscal steps to help support the growth of the mutual and co-operative sector.

The Government has announced multiple measures to unlock the full potential of the mutual sector, including in a package announced by the Chancellor of the Exchequer at Mansion House 2024.

The package included funding for the Law Commission to complete independent reviews of the Co-operative and Community Benefit Societies Act 2014 and the Friendly Societies Acts 1974 and 1992. These reviews will put forward recommendations to develop a more modern and supportive legislative environment for the mutuals registered under the relevant Acts. The Government will carefully consider the findings of the Law Commission reviews to understand whether reform of the legislation is needed to ensure these businesses are supported to grow and succeed into the future.

The package also contained non-fiscal measures to support the growth of the sector. This included a call for evidence on potential reform to the credit union common bond in Great Britain, responses to which are now being considered. The government also asked the Prudential Regulatory Authority and Financial Conduct Authority to produce a report on the current mutuals landscape by the end of 2025 and welcomed the establishment of the Mutual and Co-operative Sector Business Council. Finally, the government committed to progressing further amendments to the Building Societies Act 1986 following two statutory instruments being laid in October 2024, creating a more supportive legislative environment for building societies.

HM Treasury is currently progressing these measures. Together, they reinforce the government’s commitment to support the mutual and co-operative sector.

Please note that co-operatives and credit unions policy are devolved to the Northern Ireland Executive.