In a
keynote speech yesterday, David Cameron announced a new bill that will simplify existing legislation for co-operative and mutual formations. The Co-operatives Bill, being put before parliament before the next election, will bestow rights to public sector workers to form mutuals and help to ‘build a fairer economy’.
Delivering his speech on ‘popular capitalism’, the Prime Minster said:
“We know that breaking monopolies, encouraging choice, opening up new forms of enterprise is not just right for business but the best way of improving public services too.
But right now there are too many barriers in the way… so today I can announce they will all be brought together and simplified in a new Co-Operatives Bill that will be put before Parliament.”
Discussions concerning public sector mutuals and fairer models of capitalism have been part of ResPublica's core work since our flagship report, The Ownership State, was published in Autumn 2009.
Most recently ResPublica Director Phillip Blond's article in the Financial Times on Wednesday called for new legislation that would clear obstacles for
co-operative and mutual initiatives:
“The last consolidated company act for mutuals came in 1965 – since then it has been amended piecemeal 17 times. Quite simply, we need a new consolidated act that modernises and simplifies the co-operative model.”
Ed Mayo, Secretary General of Co-operatives UK and ResPublica Fellow, who recently charted the number strength of co-operatives around the world in a
ResPublica blog, welcomed the announcement:
“The new act is intended to make it as easy and natural to form a co-operative as any other form of business. We are delighted to see the Coalition taking action to put co-operative businesses on an equal footing and create a diverse economy.
Co-operatives, as well as being widely recognised for their ethical business practices, are a vital part of the British economy, employing more than 235,000 people, turning over more than £33 billion each year and generating a significant amount of wealth for the country.”
Over the course of 2012 ResPublica intends to extend our work in this area through the Models and Partnerships for Social Prosperity workstream, one of the three core workstreams of the ResPublica Trust. This will commence with the publication of
Re-energising Our Communities, which looks at how co-operative models can transform the renewable energy sector. We are also currently planning an initiative to mark the United Nations 2012 International Year of Co-Operatives. For further details contact
caroline.julian@
respublica.org.uk