Growing the UK co-operative economy: A policy plan

The Department for Business and Trade asked mutual sector bodies to prepare growth plans earlier this year. In response, Co-operatives UK has worked with members, partners and independent experts to develop a comprehensive plan for how government and the sector can grow the co-operative economy at pace and scale.

The resulting Policy Plan for Co-operative Growth sets out a practical path for delivering the government’s ambition to double the size of the co-operative and mutual economy.

Why co-operative growth matters

The evidence is clear: co-operatives deliver inclusive growth, strengthen community resilience and address market and public service failures across the UK. They make a disproportionately large contribution to GDP while simultaneously providing co-benefits such as fairer distribution of value, enhanced wellbeing and improved productivity .

From revitalising high streets and saving community assets, to improving supply chains and transforming care services, co-operatives help communities achieve things together that they cannot do alone. Despite this potential, the UK co-operative economy is comparatively small by international standards and has grown too slowly for too long.

This Policy Plan sets out how to change that.

Growth goals for the next decade

The plan recommends three central goals that government and the sector should pursue together:

• Double the number of co-operatives by 2035
• Increase co-operative GVA to at least £20bn by 2035
• Ensure socially and geographically inclusive growth

Achieving these goals will strengthen local economies, boost grassroots prosperity and support wider government missions.

Where co-operative growth will come from

The plan identifies five opportunity areas where co-operative models can unlock the greatest economic and social impact:

1. Food system (farmer co-operatives, innovators and reformers)
2. Everyday economy (consumer co-operatives, small enterprise co-operatives, worker and multi-stakeholder co-ops)
3. Public service innovation (social care, children’s services, primary care and education)
4. Community co-operation (land, property, high streets, rural amenities, culture and sport)
5. Infrastructure (housing, renewable energy, digital networks, retrofit)

In each area, co-operatives can address critical system failures and unlock new opportunities for sustainable growth.

Building stronger pathways for development

To deliver growth at scale, the UK must strengthen three development pathways:

• High-potential start-ups — with specialist advice, outreach and access to patient capital
• Scale-up support — enabling ambitious co-operatives to diversify, replicate and expand
• Transitions — enabling more businesses, assets and services to convert to co-operative ownership

These pathways build on existing momentum and reflect successful models seen internationally.

What policy changes are needed

The plan makes clear, actionable recommendations across four critical enablers:

1. Access to finance

A more enabling finance ecosystem, including specialist institutions, British Business Bank interventions and modernised capital-raising rules.

2. Co-operative development support

Investment in national coordination and ambitious regional co-operative development programmes.

3. Tax

Creating new tax treatments such as Common Capital Tax Relief and improving business rates for community-serving co-operatives.

4. Law and corporate framework

Modernising society law, rights to mutualise and removing practical barriers to co-operative and mutual enterprise.

Download the full plan

This plan represents the shared insight and ambition of the UK co-operative movement. It is designed to support government policy development and to enable co-operatives across sectors to seize new opportunities for growth. Click here >>