If the government is to realise its ambition of doubling the co-op and mutual economy, support needs to go beyond the centre left. One tool for this is the all-party parliamentary groups (APPGs) – several of which deal with co-ops.
APPGs, which comprise members from all political parties, have no official status but offer forums to examine policy, discuss developments, hear from stakeholders and ministers, and hold inquiries. There are groups on credit unions and mutuals, and a newly titled APPG on the social, co-operative and community economy, replacing the one for social enterprise.
“I wanted to make sure the wide variety of diverse business structures in the non-profit, community and co-op business sector were included,” says chair Patrick Hurley. “Those three words – social, co-operative and community – show it’s not just about social enterprise, but also member-owned organisations, worker co-ops, B-Corporations and more … The title of the APPG gets to the heart of what the business landscape could be over the next 10 to 20 years.”
Hurley is a member of the Co-op Party but was elected under the Labour banner in 2024, as member for Southport, after a career spanning finance, local government and social enterprise. He joined the Social Enterprise Network in 2013 as research and policy development officer for Liverpool, and also gave start-up advice on co-ops and other forms of community business.
“I thought the best way of figuring out how to advise on social enterprise was to do it myself,” he says, “so in 2014 some colleagues and I started our own community interest company.”
That business was Ethos magazine, which profiles ethical entrepreneurs and community businesses worldwide. Hurley also brought the Detroit Soup concept to Liverpool – dinner events where attendees donate to a micro-fund on the door, hear from community activities and vote on which to support.
For the APPG, he says, “our task is to lean into the intention of the new government to double the size of the co-operative and mutual economy and ensure there are diverse business models out there, not just from a progressive perspective, but also to build resilience into the business landscape and make sure the economic growth we want to see in the country is done in a much more responsible fashion.”
Related: What does ‘doubling’ the co-op economy mean – and how do we do it?
Hurley believes the group’s most pressing task is to raise awareness, but also wants to look at the diversity of business models, and at the fitness of current governance structures, “specifically when it comes to capitalisation”.
“We’re going to be taking evidence as part of a mini inquiry into social investment,” he adds, “and what needs to be done to not just replicate, but to learn from the for-profit sector and the shareholders sector of private business, to see if there’s something that we can learn from them. Do we need to revisit the legislation that gives CICs the ability to have themselves limited by guarantee or limited by shares? Or what needs to be done next to take advantage of the change in nature of the finance markets?”
Hurley hopes to present a report to ministers this summer, to see if there is any appetite for its ideas. “Then, after the summer recess, I want to do a piece of work on procurement and public service delivery, taking evidence from membership bodies such as Social Enterprise UK and Co-operatives UK, because there’s a question there with the spending review coming up. Does delivery need to be done in house? Or can it be done through the network of provision that’s been built up over the years by social enterprises, co-operatives and non-profits?”
The cross-party element of the APPG is crucial, he says. “People in different political traditions are curious about the diversity of business models and resilience [particularly] once they realise the co-operative economy is not in the ownership of just one political tradition.”
One of its members is Lib Dem MP Josh Babarinde – who has also previously run a social enterprise – while the Conservative Lord Balfe is also a keen supporter. “We’re stronger for that, and it helps us demonstrate we actually are there for the majority of people in the mainstream.”
Another APPG, on mutuals, also has a strong focus on co-ops – and in recent years, played a leading role in the successful campaign to stop the demutualisation of LV=. Its chair is Andrew Pakes, Labour/Co-op MP for Peterborough, who sees the groups as “different pieces of the same jigsaw … I hope we can demonstrate to the movement that we are seamless in working together. There are more than enough tasks to live up to our co-operative ambitions for all of us to play a part.”
Pakes grew up with co-ops, and has been involved in co-op schools and housing co-ops. “It’s a real privilege, as someone who grew up in the co-op movement, to be in Parliament and able to play a role supporting mutuals in the co-op sector in different ways,” he says.
“Co-ops give people a sense of agency and purpose over their lives in an anxious, insecure world … to me, co-operation has always been about the dignity of the human condition, and realising that we exist as better communities when we work together.”
For Pakes, the mutuals APPG is “a connection point between some of our great British mutual businesses and the political world”.
Related: Government changes to procurement rules could help community business
His goal is for the government to understand the needs of co-ops and mutuals when it comes to tax or economic reform to help fulfil the doubling ambition and see growth across the sector. “We want the group to be a space for mutual and co-op businesses to come together with parliamentarians who are passionate and determined in this space, to allow us as legislators to get under the skin of the challenges facing businesses in the co-op space.”
Pakes hopes the group will also create a practical delivery plan for building and supporting co-ops and mutuals. “Let’s work with our new mayors and authorities to get co-op development officers back in place [and] make it easier for people who want to form a co-op to understand how to do it, and have the mentorship, support and access they need.”
His message to co-op development workers is one of gratitude. “Thank you. You are an incredibly vital bit of co-op infrastructure in the UK, and we need more of you. Get in touch with me. Get involved with Patrick’s group. Get in contact with your local Co-op Party. Together we have the ability to push the boulder up the hill.”
Hurley agrees: “I know that people [working in co-op development] have been under the cosh for many years now, and that for the last 15, each year has been more difficult than the last. But the new government has a completely different approach, with people across different parties who are supportive of the sector – not just in the abstract, but who have got experience and who know what the challenges are.”
