Open call for evidence

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

Published 26 November 2025

Applies to England, Scotland and Wales

1. Ministerial foreword

Great Britain has a proud and enduring tradition of co-operatives and mutuals. Owned and run by their members, these businesses are deeply rooted in their communities and driven by values of co-operation, mutual support and democratic governance.

This government has committed to double the size of the co-operative and mutuals sector and I am delighted that the Department for Business and Trade is contributing to this ambition, complementing work across government.

This call for evidence on business support for co-operatives and non-financial mutuals aims to explore how the government can continue to support co-operatives and non-financial mutuals to start, grow and sustain, as well as support existing businesses transition into a co-operative or mutual model. It builds on the government’s ‘Plan for Small Business’ published earlier this year by taking a more focused look at the co-operatives and mutuals sector.

Co-operatives, mutuals and the wider social economy combine entrepreneurial drive with a commitment to supporting workers and communities. These organisations are often growth-oriented and ambitious^{[footnote 1]}, many are also more productive than firms with traditional business models^{[footnote 2]} and are more resilient, with far fewer business failures^{[footnote 3]}. Businesses in this sector are also often rooted in the communities they serve, and this local focus means they play an invaluable role in supporting inclusive, regional economic growth^{[footnote 4]}. This includes building skills and creating high-quality jobs generating additional expenditure for local economies. Co-operatives and mutuals remind us that the ‘how’ matters just as much as the ‘what’, a principle that deeply resonates with me.

I am inspired by the core values of the sector, built on mutual support and dedicated to backing working people. The principles of open membership and democratic governance empower people and communities, offering a way of doing business that champions the interests of its members and fosters innovation and resilience.

For too long though, co-operatives and mutuals have been sidelined, with previous governments failing to recognise their potential. That is changing.

At Mansion House 2024, the Chancellor welcomed the establishment of an industry-led Mutual and Co-operative Sector Business Council, focused on issues facing the growth of the sector, and I am grateful for their support and look forward to our continued collaboration.

At a reception for the co-operative and mutual sector hosted at No.10 Downing Street, we announced our intention to publish a call for evidence, and I am delighted that it is now open and live. Its launch in 2025 is especially significant as it marks the UN declared Year of the Co-operatives.

I want to ensure that co-operatives and mutuals are not just supported but championed as a vital part of the UK’s economic future and building on the sector’s proud heritage.

Your insights will help us shape evidence-based policy for the sector and I encourage you to respond.

Blair McDougall MP

Minister for Small Business and Economic Transformation

2. Purpose

This call for evidence invites responses on the current experiences of co-operatives, non-financial mutuals and relevant stakeholders in Great Britain (GB). 

With the Department for Business and Trade’s (DBT) focus on driving business growth, we are interested in how we can support the government’s manifesto commitment to double the size of the co-operatives and mutuals sector. This call for evidence focuses on gathering insights on the experiences of co-operatives and non-financial mutuals in navigating the business landscape throughout the business lifecycle. The purpose of this call for evidence is to build an evidence base which can be used as we go forward to inform policy proposals that can help meet the manifesto commitment.

This call for evidence is in addition to the support that the government has already announced for co-operatives and mutuals in specific sectors.

HM Treasury is funding the Law Commission’s independent review of the Co-operative and Community Benefit Societies Act 2014, legislation governing co-operatives and community benefit societies, to modernise this legal framework as appropriate and ensure that relevant regulation is proportionate and effective.

As part of the Plan for Change, the Ministry of Housing, Communities and Local Government (MHCLG) announced a £20 million package of support for community-led housebuilding groups, including housing co-operatives, which will support the construction of more than 2,500 new homes over the next decade. MHCLG also announced the establishment of a new Co-operative Development Unit within the department, supporting local authorities in England to grow their co-operative and mutual economy.

On 10 November 2025, the Prime Minister launched the Office for the Impact Economy. Housed in the Cabinet Office, with the Chief Secretary to the Prime Minister as its ministerial lead, the Office will act as the government’s ‘front door’ to purpose-driven businesses, and the wider social economy. It will enable the government to work more strategically and effectively with the social economy, harnessing and growing purpose-driven businesses in support of national renewal.

The Department for the Environment, Food and Rural Affairs (Defra)’s new Food Strategy recognises the role that co-operatives play in the food sector’s resilience and growth, as well as providing a lifeline for community access to food. Defra is considering proposals to better support local and place-based initiatives, including food and farming co-operatives and mutuals.

The government also recognises the value of, and opportunities offered by, the broader mutuals sector, including financial mutuals. At Mansion House 2024, the Chancellor set out a package of measures to support the sector’s growth. This included funding the Law Commission to conduct an independent review of the law governing friendly societies, laying 2 statutory instruments to amend the Building Societies Act 1986 and committing to further legislation, as well as running a call for evidence to inform potential legislative reform to the credit union common bond. The government welcomed the establishment of the Mutual and Co-operative Sector Business Council and asked the regulators to produce a report of the mutuals landscape by the end of 2025.

With these first steps taken, we are now seeking a more detailed understanding of the challenges and opportunities faced by co-operatives, non-financial mutuals and relevant stakeholders in starting, scaling or transitioning to a co-operative or mutual model. This call for evidence focuses on the experiences of co-operative and non-financial mutuals in navigating the wider business landscape.

The call for evidence is designed to capture the views of industry, academia and civil society. It may be of relevance to:

• co-operative and non-financial mutual businesses operating in GB
• members or potential members of co-operatives and non-financial mutuals in GB
• entrepreneurs interested in establishing a co-operative or a non-financial mutual in GB
• organisations that represent co-operatives or non-financial mutuals in GB
• academics with an interest in co-operatives or non-financial mutuals, or the broader social economy in GB
• public limited companies and other businesses interested in transitioning to a co-operative or non-financial mutual model in GB

2.1 Scope

We are gathering experiences of any business that identifies as a co-operative or mutual, in line with the International Cooperative Alliance’s Statement on the Cooperative Identity or is registered under the Co-operative and Community Benefit Societies Act 2014, with the exception of those in the financial services sector. We refer to these as ‘co-operatives and non-financial mutuals’ throughout this call for evidence. Any definitions used in this document are for the purpose of this call for evidence only. These organisations exist across sectors and legal form and can take various forms, including but not limited to:

• agricultural co-operatives
• childcare co-operatives
• co-operative clubs and societies
• co-operative schools
• co-operative social care
• community benefit societies
• employee-owned businesses
• energy co-operatives
• healthcare co-operatives
• housing associations set up as a co-operative
• supporter trusts
• NHS foundation trusts
• public service mutuals

Within this call for evidence, the terms ‘co-operative’ and ‘mutual’ are used descriptively, and not as a strict legal classification. ‘The sector’ is also used to refer to the previously listed types of organisations.

In light of the actions already taken, and the separate needs of the sector, we are not seeking responses specifically on the experience of financial mutuals through this call for evidence. However, we welcome contributions from all interested parties on the broader co-operatives and mutuals sector, particularly where there are shared challenges or opportunities.

Where open text responses are permitted, respondents can choose their own wording. When entering evidence, respondents may include:

• written summaries of published or unpublished research and data analysis
• international or domestic examples of good or poor practice that could be improved

We are not inviting external links to sources provided by respondents to research, evidence, or case studies, including media sources.

3. Background and context

A diverse and resilient entrepreneurial ecosystem should encompass a range of business models. Among these, the social economy plays a vital role by embedding social purpose and community value into the heart of business activity.

This sector includes mission-led businesses, such as social enterprises and co-operatives, that prioritise social or community benefit in addition to financial returns.

Co-operatives are a crucial part of this landscape. According to Co-operatives UK’s Co-operative and Mutual Economy Report 2025, more than 10,000 mutuals operate in the UK, and over 7,300 of these are co-operatives^{[footnote 5]}. Together, these organisations are reported to employ over 1.5 million people and generate a combined income of more than £179 billion in 2024^{[footnote 6]}. Despite accounting for just 0.2% of all UK businesses, the co-operative and mutuals sector is estimated to contribute over £35 billion in direct gross value added (GVA) annually. This is more than 1.5% of total UK GVA^{[footnote 7]}.

When direct, indirect and induced economic impacts are considered, this figure rises to over £93 billion^{[footnote 8]}. In terms of participation, an estimated 65 million memberships are held across the UK’s co-operative and mutuals^{[footnote 9]}. Of these, over 16 million are members of co-operatives^{[footnote 10]}.

3.1 Historical contributions of co-operatives

Co-operatives, have a long and proud history in the UK economy, with their origins tracing back throughout history, but especially to the 19th century. The modern co-operative movement is widely recognised as having begun in 1844 with the Rochdale Society of Equitable Pioneers in Lancashire, England^{[footnote 11]}. The principles they set out, of democratic ownership, member control and mutual benefit, have since laid the foundation for co-operative enterprise both in the UK and beyond, establishing an alternative way of doing business that prioritises people above profit.

Despite their important economic and social role, the UK lags behind many comparable countries in the development of its co-operative sector. In other countries, particularly in Europe, socially driven business models are more firmly embedded in the economy. For example, co-operatives contribute 8% of gross domestic product (GDP) in Germany and 7% in France, compared with just 2% in the UK. Moreover, among G7 countries, the UK had the second lowest ratio of co-operative turnover to population in 2020, at €730 to 1, compared with France’s €4,766 to 1 and the Netherlands’ €4,612 to 1^{[footnote 12]}.

3.2 Definition

There is no single, universal definition of a co-operative or mutual and there are various types of ownership models. Broadly, co-operatives and mutuals are businesses which are both collectively and democratically owned by their members, with the aim to deliver a benefit to their members or the wider community.

The member-ownership structure typically comprises of employees, suppliers, or the community and consumers that they serve, rather than external shareholders.

The term ‘mutual’ is often used as an umbrella term for all common ownership structures but might also refer to a mutual business operating specifically in the financial services sector, such as a building society or mutual insurer.

Co-operatives are a type of mutual that are jointly owned and democratically controlled, serving their members’ common economic, social or cultural needs (including but not limited to housing, agriculture, energy, and consumer goods).

This definition is grounded in the internationally recognised framework set out in the International Cooperative Alliance’s (ICA) ‘Statement on the Cooperative Identity’, which describes a co-operative as: “an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through jointly owned and democratically controlled enterprise”^{[footnote 13]}. Under this definition, co-operatives are founded on the following values:

• self-help
• self-responsibility
• democracy
• equality
• equity
• solidarity

They also adhere to the following set of internationally agreed principles:

• voluntary and open membership
• democratic member control
• member economic participation
• autonomy and independence
• education, training and information
• cooperation among co-operatives
• concern for community

Co-operatives and mutuals are also part of what is known as the ‘social economy’. This refers to mission-led businesses, such as social enterprises, co-operatives and mutuals, charities, that prioritise social, environmental, or community benefit above or alongside financial returns.

3.3 Economic growth

The social economy supports the UK government’s number one mission of achieving economic growth by combining strong business performance with a focus on people and communities. These organisations are often growth-oriented and ambitious. For example, Co-operatives UK found that 61% of co-operatives planned to grow in the first quarter of 2021, compared with 53% of small businesses^{[footnote 14]}.

Evidence also indicates that employee-owned businesses (EOBs), often outperform non-EOBs, with 65% of UK EOBs seeing their gross operating profits grow from 2018 to 2023 compared to 50% of non-EOBs^{[footnote 15]}. In addition, EOBs generally have around 8% to 12% higher labour productivity, in terms of direct GVA generated per person employed, than non-EOBs^{[footnote 16]}.

3.4 Economic resilience

The UK social economy can also play an important role in strengthening domestic economic resilience, responding and recovering rapidly from external economic shocks. Evidence shows that co-operatives are significantly more resilient than other businesses and are more than twice as likely to survive the start-up phase compared to other businesses^{[footnote 17]}. Additionally, Co-operatives UK reports that more than 82% of co-operative start-ups are still trading after 5 years, compared with just under 40% of UK companies overall^{[footnote 18]}. This resilience is closely linked to their strong community ties, member-led governance, and subsequent long-term strategic outlook.

There is value in keeping the proceeds of the economic growth created by co-operative businesses in the communities that generate them. We want to help diversify and strengthen local economies.

3.5 Regional development

Businesses in this sector are often rooted in the communities they serve, and this local focus means they play an invaluable role in supporting inclusive, regional economic growth. Unlike profit-maximising businesses that typically distribute profits to external shareholders, these organisations primarily reinvest their surpluses among members or into the wider community. These organisational forms also invest more heavily in human capital development, meaning they play a key role in building local skills, especially in less affluent areas.

Evidence shows that this approach helps to retain wealth locally, support high-quality job creation, and generate wider economic benefits^{[footnote 19]}. For example, Power to Change estimated in 2019 that community-owned assets generated £147 million annually in net additional expenditure for local economies and supported over 7,000 full-time jobs^{[footnote 20]}.

3.6 Sustainability

Co-operative business models are well positioned to support the UK’s net zero and sustainability ambitions. Their member-led governance structure encourages responsible resource management and long-term environmental stewardship. Evidence shows that many co-operatives embed ecological considerations into daily operations, including investing in renewable energy, reducing waste, and promoting sustainable land use.

The number of energy and environment co-operatives rose to 314 in 2025, generating £57 million in total income^{[footnote 21]}. This demonstrates the co-operative sector’s growing role in supporting our transition to low-carbon energy. Evidence also shows that EOBs are significantly more likely than traditional firms to have net zero or carbon reduction strategies^{[footnote 22]}.

Together, this evidence highlights the broad and impactful contribution of co-operatives and mutuals to the UK economy – delivering sustainable and equitable regional and national growth.

4. Current experiences of co-operatives and non-financial mutuals across sectors

Although co-operatives and non-financial mutuals represent a relatively small share of the UK business landscape, their economic and social potential is significant. Growing the sector could boost national productivity and economic growth, while placing employee and community wellbeing and sustainability at its core. This section seeks to understand the available evidence and experiences of co-operatives and non-financial mutuals to build our evidence base to inform future policy proposals to help meet the manifesto commitment.

4.1 Call for evidence questions: data and experiences of co-operatives and non-financial mutuals

1. If the co-operative and non-financial mutuals sector were to grow, what do you expect the key impacts would be? Draw on evidence, where possible.

You may wish to consider:

• short, medium, and long-term implications
• the economic, social, and environmental impact
• national and local impacts
• place-based impacts such as impacts in rural, urban and coastal areas
• any risks, challenges, or unintended consequences that might arise

For the purpose of this question, growing the co-operative and non-financial mutuals sector in GB may be interpreted or measured as it is most relevant to your sector. Specify, how you have interpreted or measured this.

2. We are interested in reliable data sources that evidence the impact of co-operatives and non-financial mutuals on economic growth. What data sources are available that show the impact – positive, neutral, or negative – of co-operatives on economic growth?

Economic growth, for the purpose of this question, refers to the long-term increase in the productive capacity of the economy, typically measured by real (inflation-adjusted) growth in GDP. 

If you are not aware of the data, feel free to skip this question. Anecdotal insights are welcome, but indicate if your response is based on personal experience.

3. How do different types of co-operatives and non-financial mutuals drive economic growth differently?

Consider worker, producer, consumer or multi-stakeholder co-operatives, as well as different legal structures for co-operatives and non-financial mutuals, for example co-operative society or company limited by guarantee.

4. What data, if any, is available on the demographic characteristics – such as age, gender, ethnicity, disability, and socioeconomic status – of the management and workforce of individual co-operatives and non-financial mutuals in Great Britain?

If you are not aware of the data, feel free to skip this question. Anecdotal insights are welcome but indicate if your response is based on personal experience.

5. Start-ups

There are many reasons why people choose a co-operative or non-financial mutual model, including a focus on co-operation, democratic ownership and control. Achieving growth in the size of the co-operative and non-financial mutual sector may require an increase in the rate at which new co-operative and non-financial mutual businesses are established. According to Co-operatives UK, the current level of co-operatives start-ups is around 220 per annum resulting in a co-operative start-up rate per million people that is significantly below that of leading nations and regions in some years. In fact, it is 4 times lower than Quebec, 6 times lower than Finland, and 12 times lower than South Korea^{[footnote 23]}.

The reasons for this disparity remain unclear. It is possible that there could be specific barriers to establishing co-operative and non-financial mutual businesses in the UK, and there could be a general lack of awareness among entrepreneurs about the potential benefits of these business models.

We are seeking evidence to better understand the factors contributing to this trend. In particular, we are interested in whether there are long-term structural issues, such as limited public or institutional awareness of co-operatives and non-financial mutuals, that may be inhibiting start-ups in the sector. These factors may affect not only public engagement and membership, but also the formation of new businesses and access to appropriate finance and business support.

5.1 Call for evidence questions: start-ups

Questions for general response:

5. Thinking about starting a business in the co-operative or non-financial mutual sector, to what extent do you agree or disagree with the following statements:

• those starting a business are not aware they can use a co-operative or mutual business model
• it is more difficult for new co-operatives and non-financial mutuals to qualify for start-up capital support schemes than for other business models
• aspiring co-operative or non-financial mutual founders often lack the necessary skills to get started
• business advisors lack awareness and understanding of co-operative or mutual business models
• investors lack awareness and understanding of co-operative or mutual business models
• there are not enough visible success stories to inspire or guide co-operative or non-financial mutual start-ups
• new co-operative or non-financial mutual founders lack access to peer support networks
• relative to other business founders, aspiring founders do not know where to find clear, accessible guidance and advice on starting a co-operative or non-financial mutual
• the rationale for starting-up a co-operative or non-financial mutual is different to starting-up another kind of business
• the process to start-up a co-operative or non-financial mutual is complex

5a. Why did you agree and or disagree with these statements? 

6.  In general, do co-operatives or non-financial mutuals face any unique barriers to starting-up that other types of business don’t face? Explain your answer.

You may wish to consider barriers to accessing capital, market share, business support, investment, public awareness, or competition with other types of business.

7. Do different types of co-operatives or non-financial mutual models face different barriers to starting-up? Explain your answer.

You may wish to consider consumer, worker, producer, multi-stakeholder and community co-operatives, as well as trusts, clubs and societies, and direct and indirect employee-owned businesses.

You could also consider different legal structures for co-operatives and non-financial mutuals, for example co-operative society or company limited by guarantee. 

8. Are there industry or sector-specific barriers to starting a co-operative or non-financial mutual? Explain your answer.

You may wish to consider industries and sectors such as healthcare, energy, manufacturing, retail, and agriculture, and so on.

6. Growing and Sustaining

For the sector to make a greater contribution to the UK economy, co-operatives and non-financial mutuals need to be able to flourish, grow and sustain. Different businesses grow differently and so to inform what the government could do to support this, we are seeking evidence on the barriers that the sector faces when trying to grow and sustain.

6.1 Call for evidence questions: growing and sustaining

Questions for general response:

9. Is the rationale and process for growing a co-operative or non-financial mutual the same or different for growing a business which is not a co-operative or non-financial mutual?

10. To what extent do you agree or disagree with the following statements about growing and sustaining a co-operative or non-financial mutual:

• growing and sustaining is too capital intensive for many co-operatives or non-financial mutuals
• it is too difficult for co-operatives or non-financial mutuals to meet the eligibility criteria for capital support
• it is too difficult to maintain co-operative and mutual principles at scale
• co-operatives or non-financial mutuals looking to grow and sustain lack access to peer support networks
• co-operatives and non-financial mutuals do not know where to find clear, accessible guidance and advice on growing and sustaining
• co-operative or non-financial mutual founders often lack the necessary skills to grow and sustain

10a. Why did you agree and or disagree with these statements?

11. Are there unique barriers to growing and sustaining a co-operative or non-financial mutual which other types of business don’t face? Explain your answer.

You may wish to consider barriers to accessing capital, market share, business support and investment, public awareness, or competition with other types of business.

12. Do different types of co-operatives and non-financial mutuals face different barriers to growing and sustaining? Explain your answer.

You may wish to consider consumer, worker, producer, multi-stakeholder and community co-operatives, as well as trusts, clubs and societies, and direct or indirect employee-owned businesses.

13. Are there industry-specific barriers faced by co-operatives and non-financial mutuals when trying to grow and sustain? Explain your answer.

7. Mutualisation

Increasing the number of co-operatives and non-financial mutuals starting and growing and sustaining is one way to help grow the sector. There is also an opportunity to grow the sector through the conversion of existing organisations into co-operatives or mutuals, a process known as mutualisation. There are examples of businesses which have transition in this way, and we would like to find out more about the experiences of these businesses.

7.1 Call for evidence questions: mutualisation

14. If you have considered mutualising, or have already mutualised, what prompted you to explore this option?

15. What do you think the impact would be of more businesses mutualising?

You may wish to consider:

• short, medium, and long-term implications of increased conversion into a co-operative or mutual model
• the potential impact on individual businesses (such as performance, resilience, employee engagement) and on the wider economy (such as productivity, innovation, regional development)
• any risks, challenges, or unintended consequences that might arise

Cite evidence where possible.

16. To what extent, if at all, do you agree or disagree with the following statements:

• there is a lack of awareness of co-operative and mutual models among business leaders
• there aren’t enough visible success stories of businesses that have mutualised
• there’s not enough clear information or advice on how to mutualise
• there are many reasons why businesses mutualise
• the process to mutualise is complex
• there is a lack of awareness of co-operative or mutual models by employees
• the landscape is too complicated for businesses wanting to mutualise
• there are insufficient incentives to encourage businesses to mutualise

16a. Why did you agree and or disagree with these statements?

17. If you have de-mutualised, can you explain why you did this and how the process went?

8. Business support and advice

There are various sources of information and advice available to help organisations with setting up, running and growing and sustaining a business. The government wants to understand the extent to which co-operatives and non-financial mutuals already access business advice and their views on the current offer of support and advice.

8.1 Call for evidence questions: business support and advice

Questions for co-operatives and non-financial mutuals:

18. In the last 3 years, have you sought out external advice or business support?

• information relating to the day-to-day running of my business
• strategic advice to help grow my business
• both of the above
• other (specify)
• I have not used external advice or information

19. What did you seek advice or support on?

• business growth and scaling
• mutualisation
• digitalisation
• e-commerce
• human resources
• exporting
• financial advice
• legal issues
• management and leadership development
• marketing
• training or skills needs
• transition to net zero
• industry or sector specific support
• starting-up
• succession (including closing or selling business)
• other
• do not know

20. Which of the following support best describes your business at the time you sought external advice or support?

• starting (just launched or preparing to launch)
• growing (expanding operations)
• scaling (growing rapidly)
• sustaining (maintaining steady operations or refining processes)
• transitioning (moving into a co-operative or non-financial mutual model)
• other (specify)

21. Where did you receive the external advice or information from?

• accountant
• bank
• business networks or trade associations
• Business Growth Service
• consultant or business adviser
• combined authority
• chamber of commerce
• GOV.UK website
• Growth Hubs (England only)
• internet search
• local council or authority
• solicitor or lawyer
• tax agent
• universities or other educational institution
• other (specify)

22. In what format (such as written, in-person, virtual, hybrid) was this information delivered to you and how did you find that experience?

23. What was your experience of accessing and using the support or advice and how useful was it?

24. Is there enough tailored support for co-operatives and non-financial mutuals?

25. Is there support or advice you think is missing for co-operatives and non-financial mutuals?

Questions for general response:

For the following questions, you may wish to consider what forms of public, private, or community support would help overcome existing barriers to starting, and whether there are specific types of guidance, funding, or broader support that would make a difference.

26. What do you think is working well and what is working less well when it comes to how co-operative and non-financial mutual businesses access capital in Great Britain?

You may wish to comment on:

• access to and types of capital (for example, loans, equity, grants or community shares)
• how accessible these are for co-operatives and non-financial mutual models compared with other business models
• examples of good practice or persistent difficulties

27. What further support would co-operative and non-financial mutual businesses benefit from when starting, growing and sustaining or mutualising?

From your experiences of navigating business support, you may wish to consider what forms of public, private of community support would help overcome existing barriers to starting, growing and sustaining or mutualising, and whether there are specific types of guidance, funding or broader support that would make a difference.

28. Is there anything else you would like to share?

9. Next steps

Through this call for evidence, we have set out and sought views the experiences the co-operatives and non-financial mutuals sector. We will analyse the responses in order to build our evidence base and understanding of the sector.

This call for evidence and the questions are for the purpose of evidence gathering and do not constitute government policy.

The closing date for this call for evidence is 18 February 2026.

10. About this call for evidence

This call for evidence was opened on 26 November 2025. It will be open for 12 weeks, with responses due by 18 February 2026.

10.1 How to respond

Read the call for evidence document. Responses can be submitted using Qualtrics.

10.2 Data protection and confidentiality

All responses will be treated as confidential and will be stored in the Department for Business and Trade (DBT) IT infrastructure. The data will only be accessible by a limited number of government officials working on the call for evidence.

Any personal data included in responses will be collected in accordance with Article 13 of the UK General Data Protection Regulation (UK GDPR). The data controller for your personal data is DBT.

You can contact the DBT Data Protection Officer at:

Data Protection Officer
Department for Business and Trade
Old Admiralty Building
Admiralty Place
London
SW1A 2DY

You can email: data.protection@businessandtrade.gov.uk.

Information provided in response to this call for evidence, including personal information, may be subject to publication or release to other parties or to disclosure in accordance with the access to information regimes. 

11. Glossary of terms

Note that unless stated otherwise, these definitions are not official.

Term	Description
Agricultural co‑operative	Co‑operative involved in agricultural production or supply, whose members are usually farmers such as dairy co‑operatives. Where involved in production, a type of ‘producer’ co‑operative where its members supply goods and services; or as a supplier, type of ‘consumer’ co‑operative where the co‑operative supplies goods or services to its members[footnote 24].
Building Society	A mutual society registered under the Building Societies Act 1986 primarily providing residential mortgages and saving products[footnote 25].
Community Business	Defined by Power to Change as any type of business which trades products and services and is run by or accountable to local people for the benefit of the local community[footnote 26].
Community Benefit Society (Bencom)	A society registered under the Co‑operative and Community Benefit Societies Act 2014 to conduct its business for the benefit of the community. Also referred to as ‘Bencom’[footnote 27].
Community Interest Company	A CIC is a special type of limited company which exists to benefit the community rather than private shareholders.
Company	A type of legal structure, registered in the UK under the Companies Act 2006[footnote 28].
Consumer Co-operative	A co‑operative owned by its customers or users, who purchase goods or services from it. Examples include retail co‑operatives, financial service co‑operatives and housing co‑operatives[footnote 29].
Co-operative (co-op)	Co-operatives are a type of mutual. Co-operatives are jointly owned and democratically controlled businesses, serving their members’ common economic, social or cultural needs (including but not limited to housing, agriculture, energy, and consumer goods). The members of a co-operative can be its customers, employees, residents or suppliers, who have a say in how the co-operative is run[footnote 30].
Co-operative Society	A type of legal organisation registered under The Co-operative and Community Benefit Societies Act 2014 and registered by the Financial Conduct Authority (FCA) on the Mutuals Public Register. These organisations operate for the mutual benefit of their members, who are united by a common economic, social, or cultural need or interest.
Credit Union	A financial services co‑operative providing deposits and loans to its members. Included here as a type of consumer co‑operative[footnote 31].
Economic Growth	Economic growth refers to the long-term increase in the productive capacity of the economy, typically measured by real (inflation-adjusted) growth in GDP.
Employee Ownership	Employee ownership is when employees have a significant say and a stake in the company they work for. If a limited company is more than fifty percent owned by its employees it is usually described as ‘employee-owned’. Where employees hold a significant stake in a company, but less than fifty percent, this is often referred to as co-ownership. There are two main types of employee ownership - direct and indirect (through a trust) employee ownership.
Employee Ownership trust	A trust that enables a company to become employee owned. It can be set up by a company’s existing owners, perhaps as part of their succession strategy, or founders starting a new employee-owned business. It was created by the Finance Act 2014 with significant tax breaks[footnote 32].
Friendly Society	A mutual society registered under the Friendly Societies Act 1974 or 1992, usually providing insurance or similar benefits to their members[footnote 33].
Governance	The way in which organisations are directed and controlled[footnote 34].
Housing co-operative	There are several different types of structures for a housing co-operative. All models revolve around the owning, renting or management of residential properties. Housing co-operatives can be either fully mutual, where all tenants are members (and all members are tenants) or non-fully mutual, which can have a wider membership base[footnote 35].
Member	A member is a person or organisation (see secondary co-operative) that trades with or benefits from the activity of a co-operative or mutual. Examples include customers, workers, suppliers and tenants[footnote 36].
Mutual	A mutual is a business owned by and run for the benefit of its members (employees, suppliers, or the community or consumers it serves) rather than being owned and controlled by outside investors.
Mutual Societies	Refers to societies in the UK for whom the FCA is the registering authority, including building societies, friendly societies, credit unions, co‑operatives, and community benefit societies[footnote 37].
Mutual Insurer	As defined by Co-operatives UK, a mutual insurer is an insurance company owned by its policyholders rather than external shareholders. In a mutual insurer, the policyholders are both the customers and the owners, meaning they have the right to vote on important company decisions and share in profits or surplus, often in the form of reduced premiums or dividends[footnote 38].
NHS Foundation Trust	Semi-autonomous health organisations in the UK, designed to provide healthcare services under the National Health Service (NHS), while being accountable to local communities through a democratic model of ownership. This model allows local staff, patients, and members of the public to become members and governors, giving them a voice in decision-making and strategic direction of the trust[footnote 39].
‘Non-Financial Mutual’	For the purposes of this call for evidence, we are defining ‘non-financial mutuals’ as all mutual organisations that operate outside of the financial services sector.
Producer Co-operative	A co‑operative owned by members who supply goods or services to the co‑operative, particularly in agriculture, such as dairy co‑operatives [footnote 40].
Public Service Mutual	An organisation that has left the public sector (also known as ‘spin outs’), continues to deliver public services and aims to have a positive impact, while also allowing “a significant degree of staff influence or control in the way it is run”.
Secondary Co-operative	As defined by Co-operatives UK, a secondary co-operative is an organisation whose members are organisations as opposed individuals[footnote 41].
Scale-up	There is no common definition of a scale up. The Organisation for Economic Cooperation and Development (OECD) defines a scale-up company as a business with average annual growth in turnover or employment greater than 20% per annum over a 3-year period.
Scale-up capital	Financing which is used to help firms grow their business. It may be used for purposes such as investing in new machinery or technology, expanding or building new factories and facilities, developing new products or services, and growing or upskilling teams.
Shareholder	An individual or entity that owns shares in a company and has entitlement to its profits. The more capital they own, the greater the share of the profits. The level of influence a shareholder has depends on the number of shares they own and the voting structure of the company.
Social Economy	The social economy refers to mission-led businesses, such as social enterprises and co-operatives, that prioritise social, environmental, and community benefit above or alongside financial returns.
Social Enterprise	The term “Social Enterprise” describes the purpose of a business, not its legal form. It is defined as a business with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners.
Start-up	A new independent company that has typically been operating for 2 years or less.
Worker Co-operative	A co‑operative owned by those who work for it. This includes worker co‑operatives producing goods and services that are sold to others, and labour co‑operatives, where workers provide their labour to others[footnote 42].

1. For example, Co-operatives UK found that 61% of small co-operatives planned to grow in the first quarter of 2021, compared with 53% of small businesses generally. ↩

2. WPI Economics, 2023, Exploring the Potential of the Employee Ownership Business Model. Employee-owned businesses are estimated to have around 8% to 12% higher labour productivity, in terms of direct DVA generated per person employed, than non-EOBs. ↩

3. Co-operatives UK, 2025, Co-operative and mutual economy 2025. More than 82% of co-operative start-ups are still trading after 5 years, compared with just under 40% of UK companies overall. ↩

4. Power to Change, 2019, Our Assets, Our Future: The Economics, Outcomes, and Sustainability of Assets in Community Ownership. Community-owned assets generated £147 million annually in net additional expenditure for local economies and supported over 7,000 net additional full-time equivalent (FTE) jobs. ↩

5. Co-operatives UK, 2025, 2025 Co-operative and Mutual Economy Report ↩

6. Co-operatives UK, 2025 Co-operative and Mutual Economy Report ↩

7. WPI Economics, 2025, Harnessing the Mutual Sector’s Potential for Growth ↩

8. WPI Economics, 2025, Harnessing the Mutual Sector’s Potential for Growth ↩

9. Co-operatives UK, 2025, 2025 Co-operative and Mutual Economy Report. Note that individuals can hold multiple memberships and that the number of members of individual organisations can be very large. For instance, the Nationwide Building Society has over 16 million members alone. ↩

10. Co-operatives UK, 2025, 2025 Co-operative and Mutual Economy Report ↩

11. International Cooperative Alliance, undated, The Rochdale Pioneers ↩

12. Co-operatives UK, Co-operative Growth Strategy: Full and Unabridged, January 2025 ↩

13. International Cooperative Alliance, 1995, International Cooperative Alliance statement on the cooperative identity ↩

14. Co-operatives UK, 2021, Co-op Economy 2021, ↩

15. WPI Economics, 2023, Exploring the Potential of the Employee Ownership Business Model ↩

16. WPI Economics, 2023, Exploring the Potential of the Employee Ownership Business Model ↩

17. Co-operatives UK, 2025, 2025 Co-operative and Mutual Economy Report ↩

18. Co-operatives UK, 2025, 2025 Co-operative and Mutual Economy Report ↩

19. See, for instance: Future Economy Alliance, 2024, Shared Mission: A Prospectus of Diverse Business Models ↩

20. Power to Change, 2019, Our Assets, Our Future: The Economics, Outcomes, and Sustainability of Assets in Community Ownership ↩

21. Co-operatives UK, 2025, 2025 Co-operative and Mutual Economy Report ↩

22. WPI Economics, 2023, Exploring the Potential of the Employee Ownership Business Model ↩

23. Co-operatives UK, Co-operative Growth Strategy: Full and Unabridged, January 2025 ↩

24. Adderley, I, 2025, Co-operatives: Linking Practice and Theory ↩

25. Adderley, I, 2025, Co-operatives: Linking Practice and Theory ↩

26. Power to Change. What is community business? ↩

27. Adderley, I, 2025, Co-operatives: Linking Practice and Theory ↩

28. Adderley, I, 2025, Co-operatives: Linking Practice and Theory ↩

29. Adderley, I, 2025, Co-operatives: Linking Practice and Theory ↩

30. Co-operatives UK. What is a co-operative? ↩

31. Adderley, I, 2025, Co-operatives: Linking Practice and Theory ↩

32. Co-operatives UK, 2024, Co-operative and Mutual Economy 2024 ↩

33. Adderley, I, 2025, Co-operatives: Linking Practice and Theory ↩

34. Adderley, I, 2025, Co-operatives: Linking Practice and Theory ↩

35. Co-operatives UK, 2024, Co-operative and Mutual Economy 2024 ↩

36. Co-operatives UK, 2024, Co-operative and Mutual Economy 2024 ↩

37. Adderley, I, 2025, Co-operatives: Linking Practice and Theory ↩

38. Co-operatives UK, 2024, Co-operative and Mutual Economy 2024 ↩

39. Co-operatives UK, 2024, Co-operative and Mutual Economy 2024 ↩

40. Adderley, I, 2025, Co-operatives: Linking Practice and Theory ↩

41. Co-operatives UK, 2024, Co-operative and Mutual Economy 2024 ↩

42. Co-operatives UK, 2024, Co-operative and Mutual Economy 2024 ↩