A heartfelt plea is going out to save the birthplace of the co-operative movement from closure.
Toad Lane Museum is where the Rochdale Pioneers opened the first ever co-op store on 21 December 1844. Since 2007 the site, its assets, artefacts and archives have all been looked after by the Co-operative Heritage Trust (CHT).
Back then, the Co-op Group gifted a generous £3m endowment as a safeguard for the future.
At the time, this was regarded as more than sufficient to make Toad Lane sustainable.
But over the years, a combination of rising operational costs, global crises and lack of financial support means it is now running at a deficit, with £240,000 income needed every year just to cover costs.
CHT manager Liz McIvor outlined the gravity of the situation to delegates at the recent UK Co-op Congress and is now appealing to the wider co-op movement to step forward and save its heritage for future generations.
McIvor, who took over in 2017, says: “I joined at a point where finances were already not looking good. The Co-op Group had provided the endowment as a security so it would be enough to operate our organisation as an independent charity and run it as a free service open to the public.
“When the building was gifted, it was in a poor state of repair and needed capital investment. We were able to apply for public funding from organisations like the National Lottery and Wolfson to do renovations and make the building fit for purpose.
“When this model was set up it was also thought that funding sources from the co-op movement would help sustain it, but donations from retail societies and international co-ops have just not happened, and the endowment has been drawn on continually.”
Almost 20 years on, that original £3m gift is down to just £600,000 and annual dividends are very low. Global crises like the pandemic and conflicts in Ukraine and the Middle East have also adversely affected the CHT’s ethical investment fund, which is in with a portfolio of local authorities and organisations putting money into renewables rather than more profitable but unethical fossil fuels
and defence.
“People just don’t understand who pays for keeping the doors open. A lot assume it is the local authority, but we get nothing from GMCA (Greater Manchester Combined Authority) and no government funding,” McIvor says.
“Everyone thinks somebody else is funding it and that the co-op movement is a regular contributor, but that is not the case. And the more you have to withdraw from the fund, the worse the picture gets .”
The situation is undoubtedly a bleak one, and McIvor is clear that if it does not improve then in two years the Museum will have to close and its assets will be redistributed. Meanwhile costs continue to mount.
“Our assets are also liabilities because they need to be looked after and cared for. We pay £50,000 in rental to Co-operatives UK every year to look after the archive at Holyoake House in Manchester. The further away we get from Rochdale, the harder it is to operate a service, so we are trying to move that archive as close to the museum as we can and working in partnership with Rochdale Development Agency to find a new space which should be cheaper.“
It was announced at the UK’s Co-op Congress that the Co-op Group has stepped in to avert immediate disaster and is increasing its funding ten-fold to £150,000 for 2026.
But, as Russell Gill, head of community delivery at the Group explains, that one-off lifeline won’t be enough unless it is backed up by a wider commitment from the co-op movement.
“This is buying us time, but it will not prevent the Trust from posting a further loss this year. And we cannot act alone. So my plea to other co-operatives is to put your shoulder to the wheel.
“We cannot rely any longer on living off the proceeds of a donation made 20 years ago. A new funding model is needed which all who share a link back to Rochdale feel able to contribute to.
“A sustainable solution would be a powerful message to CHT trustees and colleagues that we will act before it is too late.”
He adds: “The whole co-op movement leans on our heritage. This is such an important place for all of us and definitely something we need to invest in. But the plain truth is that since the Heritage Trust was set up, we haven’t done so. We have now reached the point where the endowment is no longer sufficient. We have all been complacent and thought it would stand the test of time. So we need intervention from the whole movement, and we need to develop a sustainable model.”
If the movement does not act, there will be consequences, Russell added. “Sadly, the changing face of the movement has seen the loss of some institutions – but this is about the assets we are responsible for. We need to pass them on just as previous co-operators did for us.”
This year, the Museum made the difficult decision to charge £7 entry to over 18s, and there is also a small income from online donations, cash and merchandise.
McIvor says: “It was a hard decision, but we just couldn’t afford to continue to be free and we have made more money in the last six months from visitor entry than room hire, merchandise and donations. However, we can’t trade out of the deficit; the costs are unsustainable.”
Various solutions are being explored, including a ‘Heritage Levy’, a set fee per month or year where each co-op with a UK membership would pay towards cultural and ‘values and principles’ commitments. Something similar is paid by Co-operatives UK to the ICA every year.
“It would have to be imposed through the Co-operatives UK membership according to their scale and size,” says Gill. “The idea is not developed yet, but it would be like a membership subscription. This was first thought of in the 1920s to raise the funds to buy the museum building back on the movement’s behalf.
“There are options on the table, but the Co-op Group cannot do it alone. In order to get back to a stable position this year, we need £240,000 investment to stop us drawing down again on the endowment.
“Ultimately the message from my side is, if you value this and it is something you want to maintain, you have to help us or the Museum will close. It will be passed to something like a local community organisation; it will not be open to the public, our assets will be re-distributed and what we can’t distribute will be destroyed – because under our constitution we are not allowed to sell any assets.
“At the end of this year we are very likely to have a Labour/Co-op prime minister. We have got the potential and ambition to grow co-ops for the first time in a long time. And we have still got time to save our heritage if we act now as a movement.
“In 18 months it will be too late.”
