Sector body Co-operatives UK has put out a call for evidence of structural barriers hampering the movement ahead of a lobbying effort this autumn.
The apex says it is building a case for change to take to the government and other public bodies; banks and other lenders; and business platforms, to offer co-ops a more level playing field.
“Everywhere we look, we find polices and processes created solely with companies in mind,” it says. “This can create issues for co-operatives and community benefit societies. Now it is time to do something about it.“
Calling for a “system reboot”, Co-operatives UK adds: “By working together, we can convince businesses to correct their policies and processes – and influence government to play its part as well. By businesses we mean: banks; other lenders; and other platforms that for online services and selling.
“Together we can build a dossier of evidence to influence decision-makers in private businesses and public bodies. By autumn 2024 we hope to have gathered enough evidence to take to decision-makers.
“The longer we wait, the worse these problems will become.“
The apex says its member organisations have reported a number of serious barriers to their operations, including months of delay just to open a bank account; bank accounts frozen because societies are incorrectly recorded as ‘closed down’ after converting from a company; being unable to to sign up for vital online services or frozen out of accounts; and being refused access to an approved supplier list because of issues with due diligence processes.
“These are mostly caused by flawed policies and processes in private businesses,” it adds, “but in some cases the problems originate in public bodies like Companies House.”
The problem is set to worsen as processes become digitised and automated, warns Co-operatives UK, and “makes being a society and/or a co-operative harder than it needs to be”.
It adds: “Societies are disadvantaged and the perception that choosing a co-operative model is complicated and burdensome grows. The scale of these issues affecting societies is a strategic concern.”
Now, the apex wants to hear from all societies that have experienced difficulties due to their legal form.
“We will collate these issues and build a dossier of evidence to influence decision-makers in private businesses and public bodies,” it says.
In the meantime, the apex offers immediate support or advice on any issues: email [email protected]