Removing the barriers to secure economic, societal and environmental benefits

The Mutuals & Co-operatives Together partnership Group (Association of British Credit Unions, Association of Financial Mutuals, Building Societies Association, Co-operatives UK, The eoa) commissioned WPI Economics to carry out a research project to measure the growth of the cooperative and mutual sector in the UK.

This independent report shows removing financial barriers will unlock growth for mutuals and deliver on Labour's Manifesto pledge to double the size of the mutual and cooperative sector. 

Key findings:

• There are 9,500+ mutuals and co-operatives across the UK, representing 68.8 million memberships. 
• Despite making up just 0.2% of UK businesses, the sector generates £35bn in direct GVA, and £93bn when including indirect and induced contributions. 
• Mutuals bring additional benefits such as greater productivity, resilience, fairer pay, community wealth, local economic impact, and progress towards decarbonisation and wellbeing goals. 

With bold, early action, the report shows that mutuals could grow at 7.2% annually — four times faster than the wider economy — and deliver a 34% increase in economic contribution during this Parliament alone. 

Barriers to growth identified in the report: 

• Difficulty accessing finance and capital 
• Outdated legal and regulatory frameworks 
• Lack of awareness among investors and funders 
• Limited institutional support tailored to mutuals’ unique structures 

The report outlines practical recommendations: 

• Targeted reforms to improve access to capital 
• A fair share of enterprise finance and business support directed to mutuals 
• Swift delivery of the Law Commission’s review of mutual law 
• Creation of specialist investment institutions for the sector 
• Support for mutual leaders through training and growth advice

Download the full report