Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department is taking steps to encourage the growth of the consumer co-operative sector.

The Government is committed to having a thriving co-operative sector and helping to support and establish further businesses which serve local communities up and down the country.

The Government has provided significant support to the co-operative sector in recent years and has sought to improve the business environment for co-operatives and mutuals. The Co-operative and Community Benefit Societies Act 2014 helped cut through the legal complexity involved in running a co-operative, improving their competitiveness. The ability of co-operatives to raise £100,000 of withdrawable share capital per member, increased from £20,000 in 2014, has also ensured that co-operatives have the necessary flexibility to raise funding and compete more effectively with companies.

Most recently, the Government is supporting a Private Members' Bill on Co-operatives, Mutual Insurers, and Friendly Societies, which will grant HM Treasury the power to bring forward regulations to give those mutuals further flexibility in determining for themselves the best strategies for their business regarding their surplus capital.

The Government also aims to continue to develop a modern and supportive business environment to set mutuals up for success, and as part of this, it is currently exploring options for reviewing key legislation underpinning the sector.