Andrew Pakes MP has been appointed as the government’s new co-operatives and mutuals champion.
The Building Societies Association (BSA) has welcomed the appointment, stating that "this is an exciting opportunity for government, the champion and the sector to work together to unlock the full potential of building societies, credit unions and other member-owned businesses".
As part of yesterday's Budget, the government announced a £10 million regional co-operative development programme to help double the size of the co-operative and mutual sector.
The UK’s mutual and co-operative economy already generates £179.2 billion a year and contributes more than 1.5% of UK GDP, despite representing just 0.2% of businesses.
The BSA is calling on Pakes to help create the conditions for mutuals to thrive by focusing on three priorities:
1. Unlocking growth through better access to capital, so customer-owned organisations can reach and support more people,
2. Putting mutuals at the heart of policymaking, so their distinctive contribution is considered from the outset across government,
3. Creating a genuinely level playing field, enabling customer-owned firms to compete, innovate and grow alongside shareholder-owned businesses.
Simon Taylor, chair of the Building Societies Association and chief executive of Melton Building Society, said: “This appointment marks a moment of real opportunity for customer ownership in the UK. Building societies, credit unions and other member-owned businesses put the people they serve at the heart of their decisions. This brings valuable diversity to our economy.
“The sector is already making a major economic contribution, helping people to save, buy homes and access trusted services. But there is so much more it can do. With better access to capital and a fairer policy environment, building societies and credit unions can grow and reach many more people.
“We are excited to work with Andrew and colleagues across government in a powerful partnership to turn the ambition to double the sector, into practical action. Together we can remove barriers and open new routes to growth and make customer ownership a much bigger part of the UK economy.”
