Andy Burnham, the UK’s first Labour and Co-operative prime minister, is still in his honeymoon period, with his government enjoying a bounce in the polls and managing a slender lead over the populist right wing Reform.
His economic agenda has resonated with voters, with proposals to increase regional investment, reform business rates, support UK businesses through government procurement and devolve power polling well. These measures all chime with the government’s pledge to double the size of the co-operative and mutual economy – and the new PM was given a rapturous welcome by the movement.
After the fanfares, however, comes the tougher business of actual government. And it may not all be plain sailing ahead, with funding pressures over social care, health and defence. There is also fierce debate over net zero policies. Burnham faces pressure from some quarters – including some trade unions – to water down net zero targets and press on with new North Sea oil and gas drilling.
Environmentalists, on the other hand, accuse him of being slow off the mark in mentioning the the climate crisis during the UK’s recent wildfires – and are not happy with his promotion of data centres which consume huge quantities of energy and water.
In terms of the co-op movement, Burnham can build on policies laid down under his predecessor Keir Starmer. Toward the end of Starmer’s tenure, voices in the movement were offering a mixed verdict on progress. They included James Wright, policy officer at Co-operatives UK, who told the UK Society for Co-operative Studies conference in May that positive steps like the Pride In Place programme and Local Power Plan were balanced out by slow progress on the Law Commission review and a funding crisis in co-op development work.
Now, Co-op News asks sector leaders what they want from the Burnham administration …
Rose Marley, CEO, Co-operatives UK
I worked alongside Andy Burnham for almost a decade, first as chair of the Social Enterprise Advisory Group for GMCA and on the Our Pass campaign for young people – and more recently in my current role, as CEO of Co-operatives UK. During that time, I’ve seen his belief that the people closest to the challenges are often closest to the solutions.
There’s growing recognition that co-operatives and mutuals can help tackle some of the country’s biggest challenges. We’ve seen it first hand when working with local and national government, whether that’s supporting the Pride in Place programme or helping senior civil servants better understand how co-operatives and mutuals can deliver public policy.
My hope is that this now becomes the norm rather than the exception, with policymakers routinely considering the ‘impact economy’ alongside more traditional approaches. There’s still more to do to build that understanding, but the direction of travel is really encouraging.
My only caution would be not to try to boil the ocean. Working with the Mutuals Council and the new co-op champion, as announced at Co-op Congress, I’d like to see a focus on areas where we already know co-operatives can make the biggest difference, including food and farming, social care, community energy and community ownership. Show what works, build confidence, then scale it.
Blase Lambert, CEO, Confederation of Co-operative Housing
When CCH published its 2024 Manifesto for Change, we called for a fundamental shift in housing policy: communities should have greater power to shape and control the homes they live in. Central to our proposals was a new legal co-operative housing tenure, alongside better access to finance, public land and stronger resident rights.
There is now an important development on our most distinctive ask. The Labour Government has indicated that it is considering legislation to establish a legal framework for a co-operative housing tenure. This follows a parliamentary debate led by Gareth Thomas MP and represents a significant step towards addressing a long-standing weakness in the legal framework.
For CCH, this matters enormously. At present, co-operatives can operate through a variety of legal and contractual arrangements, but there is no dedicated statutory tenure that properly reflects the relationship between a housing co-operative and its members. Our manifesto called for a Co-operative Housing Act that would put co-operative tenants on a secure footing comparable with other social housing tenants.
The Government’s wider housing programme also contains elements that align with our manifesto: increasing social and affordable housebuilding, strengthening tenants’ rights and supporting community-led housing. Labour’s commitment to growing the wider co-operative economy is particularly welcome.
There is therefore a real opportunity to move from recognition to reform. A bespoke co-operative tenure could provide the legal certainty that lenders, regulators, advisers and communities need, while giving existing and new housing co-operatives a firm foundation for growth.
But legislation is only the beginning. We also need the Government to tackle the financial and land barriers that prevent co-operative housing from growing at scale, including our call for a financial intermediary providing affordable capital and a presumption in favour of transferring suitable public land and buildings to co-operatives.
Our message to Labour is clear: if you want to double the size of the co-operative economy, co-operative housing must be part of that ambition. The commitment to explore a new tenure is a welcome breakthrough. Now we need to turn that commitment into law and make co-operative housing a mainstream part of the housing system.
James de le Vingne, CEO, Employee Ownership Association
The eoa exists to propel employee ownership (EO) into the mainstream, ensuring it remains accessible to any business that might benefit from the model. We have more tools, data, and partners than ever to make that a reality.
Andy Burnham’s emphasis on ‘good growth in every postcode’ reflects a desire to give people and places more control over the economy and a greater share in its success.
Employee ownership should have a distinctive place within that agenda. It extends control into the workplace, gives people a meaningful stake in the businesses they help to build, and anchors good jobs, skills and wealth in local communities. The eoa is continuing to work with the Mutuals and Co-operatives Business Sector Council to support Labour to deliver its commitment to double the co-operative and mutual economy (which includes EO).
We’re also engaging with new ministers to share our key priority policy asks to grow EO:
1. Stabilise & Future-Proof the EOT
We want to see legislative improvements to the Employee Ownership Trust (EOT) and consolidated HMRC guidance that maintains robust safeguards while reducing uncertainty, administrative cost, and risk for business owners.
2. Create Tailored Capital Instruments for EO
We’re calling for Government to work with the British Business Bank and values-aligned investors on a dedicated EO Finance Programme – supporting growth and acquisition finance, refinancing of deferred consideration, and targeted transition support.
3. Evolve the EO Models to Encourage Greater Individual Wealth Creation
We want Government to commission a time-limited programme with HM Treasury, HMRC, and the Department for Business & Trade to explore a legislative toolkit that builds on the strengths of existing UK EO models.
4. Leverage Public Procurement to Support EO
We’ll work with Government to explore how procurement policy can better recognise EO, including through social value criteria, reserved competitions where appropriate, and better measurement of direct and supply-chain expenditure with EO businesses.
Bethan Webber, CEO, Cwmpas
We believe that Andy Burnham’s new government offers a significant opportunity to reshape economic development across the UK. As the first Co-operative Party prime minister, and drawing on his experience in Greater Manchester, he has the opportunity to unlock co-operative approaches in all parts of the UK – creating good jobs, securing essential services, empowering communities and building a more resilient economy.
Co-operative development should be at the heart of place-driven economic development policy. Initiatives such as Pride in Place should do more than fund short-term improvements, and help create a new generation of co-operative enterprises and community-owned assets, capable of becoming lasting anchor institutions in the communities that need them most.
Related: Interview, Sarah Harrison of the Building Societies Association
Labour’s manifesto commitment to double the size of the co-operative and mutual sector must become a clear government priority, backed by a practical delivery plan. Success should not be measured by UK-wide growth alone: it must be visible in every region and nation, ensuring communities across Wales benefit fully.
In Wales, this must be underpinned by genuine partnership. The UK and Welsh Governments must work together co-operatively to achieve their shared ambitions. We are excited to work with both of them to support co-operative growth.
Matt Bland, CEO, All Together Money
I see the new government as an opportunity to build on the strong progress already made in recognising the role that mutuals and co-operatives can play in creating a fairer, more inclusive economy.
The previous government made important progress in putting credit unions and the wider mutual movement higher up the policy agenda, including its ground-breaking commitment to double the size of the mutual and co-operative economy and the establishment of a new Financial Inclusion Strategy. My hope is that the new government will build on that foundation and turn that ambition into further practical progress.
There is also a great opportunity to draw on the prime minister’s own experience of working with credit unions. During his time as mayor of Greater Manchester, Andy Burnham was a proactive supporter of the movement and worked with Greater Manchester’s credit unions through initiatives such as SoundPound. That collaboration has demonstrated what can be achieved when credit unions are seen not simply as financial providers, but as partners in delivering wider economic and social policy.
Related: UK mutuals body AFM warns red tape threatens financial resilience
That is the approach I would like to see replicated nationally. Credit unions can make a real contribution to financial inclusion, affordable credit, savings, household resilience and economic growth, and we should be looking at how Government can work with the sector to deliver those outcomes. There are real opportunities, with a little more ambition from government, to transform financial resilience through ideas like opt-out workplace savings and by asking the banks to do a little more.
I also recently wrote to Lucy Rigby following her reappointment as economic secretary to the Treasury, welcoming the opportunity to continue the positive relationship we developed while she was in the role previously and the progress made on issues including financial inclusion and common bond reform.
Alongside this, I joined fellow members of the Mutual and Co-operative Sector Business Council in writing to the prime minister to reaffirm our commitment to working with government to deliver its ambition for the mutual and co-operative economy.
For me, the message is simple: there is already a strong foundation to build on. I want to see government maintain that momentum, continue listening to the sector and work with us to unlock the full potential of credit unions across Great Britain. Credit unions and the wider co-operative movement are ready to bring about good growth and help restore hope.
Matt Vickers – CEO, Community Energy England
Greater Manchester has long shown what place-based leadership can achieve. As the new prime minister, Andy Burnham has a real opportunity to bring that approach to the UK’s transition to a greener, cheaper and fairer energy system – putting communities at its heart.
The Local Power Plan addresses some of the recommendations in Community Energy England’s Up the Energy campaign, and we welcome that progress. But critical barriers remain. The government now needs to build on this momentum and ensure every community can share in the benefits of clean, affordable energy.
That means delivering the Local Power Plan and Warm Homes Plan, guaranteeing a fair export price for community-generated electricity, prioritising community projects in grid connection queues, supporting local supply models, public sector purchasing and shared ownership, and opening up public land and rooftops for community energy.
Related: Boost for community energy as UK government launches £1bn power plan
The Energy Security and Net Zero Select Committee report, How community energy can turbocharge the transition, explains why this matters. Community energy is about far more than generation. Communities can help build flexible local energy systems, roll out low-carbon technologies, support people to use less energy and develop local energy markets and this is all the more important in the future of a decentralised and decarbonised energy system.
It is encouraging to see GB Energy investing in the transition. But we must not miss the bigger opportunity. Community energy should be a strategic partner in building the energy system of the future, with investment in the people, skills and capacity that make community-led action possible alongside investment in generation. Investing behind specific generation projects only go so far. To scale community energy needs support for social infrastructure by investing in skills, capacity and capability.
What we want from the Burnham administration is simple: put people, partnerships and places at the heart of the energy.
James Alcock, CEO, Plunkett UK
Plunkett welcomes the new government’s commitment to doing things differently: devolving power, backing communities and growing the co-operative and mutual economy. Our ask is simple: make sure rural communities are part of that ambition.
First, we need dedicated investment in rural community ownership. We are not asking for new money. We want existing commitments, including the Community Right to Buy Fund, to include a fair rural allocation and to work with Plunkett to reach communities ready to act. We are already supporting a pipeline of more than 1,000 prospective community businesses, many of which have stalled because they cannot access the right blend of grants, community shares and affordable finance.
Related: Labour policies threaten rural co-ops, warns Plunkett UK
Second, government must help existing community-owned businesses survive and thrive. These are better businesses for people, the economy and the environment, often operating where the market has failed and sustained by extraordinary volunteer effort. Targeted fiscal relief would recognise and reward the value they create.
Finally, if “Manchesterism” means recognising that places need different solutions, that principle must extend beyond our towns and cities. Rural disadvantage is different and often hidden. We want to ensure government’s ambitions reach rural communities in every nation, region and postcode.
