Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will introduce legislation to allow cooperatives to issue capital instruments to raise finance which don’t lead to demutualisation.

The government is keen to ensure that the law governing co-operatives and community benefit societies supports their growth. That is why we are funding the Law Commission’s independent review of the Co-operative and Community Benefit Societies Act 2014.

The Law Commission’s independent review is considering ways to update and modernise the legislation for co-operatives and community benefit societies, ensuring that it fits the nature and needs of these societies as well as ensuring that regulation is proportionate and effective. The Law Commission is considering methods of raising capital, including society shares, as part of its review.

The Law Commission will publish its final recommendations in 2026. Once this is published, the government will carefully consider the Law Commission’s recommendations to understand whether reform of the legislation is needed to ensure these businesses are supported to grow and succeed into the future.