Chancellor launches once-in-a-generation consultation on co‑operative growth

Chancellor Rachel Reeves has used her Budget statement to launch a once-in-a-generation consultation on how to support co-operative growth.  

Between today (26 November) and 18 February 2026 the Department for Business and Trade is running a ‘call for evidence on business support for co‑operatives’. 

The department wants to hear from co‑operatives, advisors and experts on how to enable start‑up, scale‑up and mutualisation. Officials are also asking for evidence on what the impacts of co‑operative growth could be. 

This is a rare opportunity to develop national policy on co‑operative development, access to finance, law and tax – all of which could be critical enablers of growth and impact.    

Co‑operatives UK will help to co‑ordinate a sector response, ensuring the needs and aspirations of co‑operatives large and small, in every sector, are accounted for. 

The apex body's initial thoughts and plans for member participation will be published in the coming days. Co-operatives UK does ask that co‑operatives take their time before responding directly to Department for Business and Trade.  

Read the consultation here: Call for evidence on business support for co‑operatives and non‑financial mutuals – GOV.UK 

In addition to the call for evidence on business support for co-operatives, our initial response to the wider Budget announcement is: 

• We are thankful that HM Treasury retains the employee buyout Capital Gains Tax (CGT) relief, albeit at a much lower 50%. In our view, this change makes business support and finance for mutualisation more important. It also strengthens the case for making the low cost worker co-op model eligible for the relief, as this  will make mutualisation an economical option for a wide range of businesses.
• Lower business rates on small retail and hospitality properties will be a welcome relief for all our bricks and mortar co-operatives. Though cost pressures continue elsewhere, with further Living Wage and employer National Insurance increases.
• £13 billion in integrated settlements for strategic authorities looks good. We hope these authorities allocate some of their new business support funds for co-operative development.
• We welcome British Business Bank’s plans to deploy £2.5bn a year. Based on GVA (gross value added), a proportionate allocation to schemes that cater to co-operatives would be £15m, which would be a gamechanger for their growth.
• We will assess the potential impact of the High Value Council Tax Surcharge on large co-operative HMOs.
• We are also pleased the government is continuing to support research and development (R&D) and will publish an advance assurances scheme for small and medium sized businesses to gain clarity on key elements of R&D tax relief claim.

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