With spending cuts looming, more focus on cooperatives and mutuals is urgently needed.
For too long, the laws that apply to co-operatives and community benefit societies (often described as ‘mutuals’) in the UK have remained largely unchanged, but the Law Commission’s recent review of the Cooperative and Community Benefit Societies Act 2014, which is due to report later this year, could mean change is afoot.
Finally, policymakers are asking the right questions about whether businesses run for social good could bring wider benefits for communities and support the delivery of much-needed local services.
Whilst the Spring Forecast was widely billed to be a low-key event, with no new fiscal measures to be announced, Rachel Reeves did provide more information about the proposed cuts to welfare benefits. All eyes will be on the spending review in June to find out which other cuts in public spending are on the way.
Against this backdrop of cuts and efficiencies, we hope that the Government accelerates plans to empower social businesses. Concrete steps must be taken to deliver on their pledge to ‘double the size of the co-operative and mutuals sector’ by supporting diverse business models and addressing barriers such as access to finance.
Some measures that we would like to see soon include:
- Funding support for taking forward the new ‘community right to buy’, which was introduced as part of the Devolution White Paper
- Support for charities and social businesses to assist with the rise in employer NICs, which takes effect in April