Andrew Griffith MP announces government review of Co-operative and Community Benefit Societies Act 2014 at Congress

"The most comprehensive modernisation" of the co-operative sector for a generation will start this year following a major announcement at Co-op Congress 2023.

Andrew Griffith MP, Economic Secretary to the Treasury and City Minister, announced that government will be launching a review of the Co-operative and Community Benefit Societies Act 2014 and Friendly Societies Act 1992 - conducted by the Law Commission - in the autumn of 2023.  

Andrew Griffith MP said: "With work expected to start later this autumn, this will be the most comprehensive modernisation of the sector for a generation. And it will develop a more modern and supportive business environment which sets co-operatives and friendly societies up for, I hope, another 152 years of growth."

The democratic economy has the backing of the current government according to the Economic Secretary to the Treasury. He said: "This government is on the side of a co-op and wider mutual sector. The future of mutuality looks bright and prosperous and together we can learn, inspire and think big for your communities and the country."

Co-operatives UK CEO, Rose Marley, welcomed the review. She said: "We're grateful to HM Treasury for the role it has played in securing this review. As we have said many times in recent years, a wholesale review, with a view to introducing primary legislation, is long overdue.

"The UK’s co-operative legal framework is currently limiting and in places dysfunctional. This costs the sector millions of pounds a year in unnecessary time, expenditure, inefficiency and missed opportunities."

Co-operatives UK believes strategic objectives for improving co-operative law should focus on:

• Enabling co-operatives to form, grow, innovate and reach their potential with a particular focus on reviewing equity raising and the utility of the society legal forms for modern entrepreneurship
• Removing unnecessary or disproportionate costs, burdens or complexities for co-operatives such as audit requirements for small societies

The last general review and reform of co-operative and community benefit society law was undertaken by the Gladstone administration in 1893. Since World War II, improvements to society law have been rare and piecemeal.

In 2014, the Coalition government passed the Co-operative and Community Benefit Societies Act. While welcomed by the Co-operative Movement, the Act was consolidation legislation and therefore did not make material changes to the law.

Rose Marley said: "The power of co-operation can be seen right here. We've campaigned for fundamental change in legislation for some time. When we work together positive things happen. We've campaigned long and hard alongside our retail co-operative society members, alongside infrastructure bodies and federal members including. From The Co-operative Party to ABCUL to AFM to the BSA, when we work together the Co-operative Movement moves!"