Second phase of cost cutting will look at ‘efficiencies’ across the Group

Elected members told the Co-operative Group board it was “disappointing” that corporate overheads have not been reduced.

The North region motion, which was backed by 100% of delegates, said it recognises the need for savings in operational and membership areas, as part of Project Orion. But added: “It is disappointing to note the lack of similar achievements in the area of corporate overheads, and the board and executive are requested to rectify the situation as a matter of urgency.”

In supporting the motion, the Group board said a second phase of Project Orion will “look for efficiencies across all functions and activities that the Group undertakes”.

The response added: “This will include looking at the overall operating model of the organisation. In addition, the Group has recruited a new, highly experienced Group procurement director who is reviewing how the Group buys its own supplies in order to make sure it gets the best value for money and business terms from all of its suppliers. The board will share the outputs from these two activities when they are further progressed.”