"Game-changing" £10 million Co‑operative Development Programme announced for England

Government has today (Friday 25 September) announced a new £10 million Co‑operative Development Programme for England. The programme will help mayors and strategic authorities set up more co-operatives.

Rose Marley, CEO of Co‑operatives UK, said: "This is a game changer. It is a clear commitment to the investment needed for significant co-operative development. This funding shows a government that understands how giving power and agency to communities brings positive change and improves lives, with community, business and local government all working together."

Full details of the programme have not yet been confirmed, though government has confirmed funds will go to strategic authorities across England to support the development of new co-operative businesses. The programme is part of a £210 million package to regenerate high streets. The package also includes a £125 million Derelict Buildings Fund and £65 million to help communities take over pubs, clubs and shops at risk of closure.

The new funding fully aligns with government's ambition to double the size of the co-operative and mutual economy. It comes just one day after Co‑operatives UK published its annual Co-operative and Mutual Economy 2026 report.

The report shows co-operatives offer the type of good growth that lasts: 83% of new co‑operatives are still trading after five years, against 38% of UK businesses generally. Co‑operatives are also more than four times as likely to be Living Wage employers and have a lower gender pay gap.

But the report also shows why this investment is needed. There are 8,005 co-operatives in the UK – just 0.14% of UK businesses – and this number increased by only 0.41% last year.

The announcement comes as government prepares to publish its response to a major ‘call for evidence’ on co-operative business support, undertaken by the Department for Business Innovation Science and Trade. The new Co‑operative Development Programme goes a long way to addressing the challenges highlighted in that consultation.

It also follows last week's launch of a £20 million Community Energy Fund by Great British Energy, which gives development support and finance to co-operative energy projects. That fund is the first part of a £1 billion Local Power Plan.

Co-operatives UK will now be working with government on the detail and delivery of the new £10 million Co-operative Development Programme.