Call for evidence on business support for co-operatives and non-financial mutuals

The Department for Business and Trade has opened a Call for Evidence seeking views on how to strengthen support for co-operatives and non-financial mutuals across Great Britain. The initiative aims to help these member-owned businesses start, grow, and sustain operations, as well as assist traditional firms in transitioning to co-operative or mutual models.

This move supports the government’s manifesto commitment to double the size of the co-operative and mutuals sector, building on its Plan for Small Business and wider efforts to grow the social economy. Co-operatives and mutuals, which combine entrepreneurial drive with community values, are often more productive and resilient than traditional firms, with start-ups twice as likely to survive beyond five years.

Key objectives of the call include:

• Understanding barriers and opportunities for co-operatives and mutuals throughout their business lifecycle.
• Gathering evidence on the sector’s impact on economic growth, regional development, and sustainability.
• Exploring support mechanisms for businesses wishing to adopt co-operative or mutual models.

The government has already announced measures such as a £20 million fund for community-led housing groups, the creation of a Co-operative Development Unit, and the launch of the Office for the Impact Economy to champion purpose-driven businesses.

According to Co-operatives UK, the sector employs over 1.5 million people, generates £179 billion in income, and contributes more than £35 billion in direct GVA annually. Despite this, the UK lags behind other nations, where co-operatives account for a larger share of GDP.

The consultation is open until 18 February 2026, and responses are invited from businesses, academics, civil society, and entrepreneurs. Submissions can include data, research, and examples of best practice.

The call for evidence can be accessed here.