Energy Bill prolongs uncertainty for community-owned renewables
by Ethos Admin
Co-operatives UK welcomes the support for investment in renewables outlined in the Energy Bill, launched yesterday in Parliament.
However, the Bill prolongs the uncertainty faced by smaller electricity generators, including community-owned renewables. It is not yet clear whether they will be able to participate in the new energy market.
There is strong political support for community energy. Ed Davey, Secretary of State for Energy and Climate Change, recently said “I want nothing less than a community energy revolution”, and the May 2010 Coalition Agreement states “we will encourage community-owned renewable energy schemes where local people benefit from the power produced”.
Yet the Energy Bill does not include provisions to ensure that community-owned energy above 5 MW will be able to compete with commercial generation. Work commissioned by Co-operatives UK and undertaken by Cornwall Energy highlights significant problems:
- - Participation in the system requires a high degree of technical knowledge, which acts as a barrier to entry for smaller generators
- - Smaller generators actually receive lower market prices for their power, and this is not compensated through the proposed Contracts for Difference system in the Energy Bill
- - With the end of the Renewables Obligation, suppliers will have no incentive to purchase renewable electricity from independent generators.
Whilst the government has today confirmed that these problems exist, the Energy Bill provides no measures to address them. It merely offers to “initiate a stakeholder process” to identify changes that may be required for a smooth transition to the new system.
Co-operatives UK argues that much more needs to be done to ensure that co-operative and independent generators are not put at a disadvantage. It is calling for:
- - An increase in the fixed Feed-in Tariff threshold, to allow funding certainty for community projects
- - The creation of a ‘purchaser of first option’ to provide a guaranteed market for community energy schemes and other smaller generation projects
- - A minimum annual target for new generation capacity from community schemes
- - Wider measures to encourage a more diverse energy market.
Co-operatives UK will seek to work with MPs to put these suggestions forward during the passage of the Energy Bill through Parliament.
Posted at 30th November 2012
New Business Lifeline Service unveiled
by Ethos Admin
Co-operatives UK has unveiled a new pilot scheme with government backing to help the staff in a business close to insolvency to take it over as co-operative owners.
The 'right to buy out' initiative, which coincides with the first global worker co-operatives day, being held on Friday 16 November, will be piloted in 2013 and was proposed in July's Nuttall Review of Employee Ownership.
The proposed pilot, which has commitment from the Department for Business, Innovation and Skills (BIS), is to give employees the opportunity to work through a viable business model for their business with a specialist advisor rather than simply let the business dissolve.
The scheme, set out in a new report, Saving Business, by international insolvency expert Anthony Jensen, builds on successful examples of employee buyouts in the UK and is an approach that has seen wider uptake across the world.
In Spain, for example, a similar right to buy out has resulted in 120,000 jobs being saved or created through the formation of 12,000 worker co-operatives. In France, over 700 businesses on the verge of closing down have been transformed into co-operative businesses between 1989 and 2010, representing over thirty enterprises a year, saving thousands of jobs.
Ed Mayo, Secretary General of Co-operatives UK, said: "This scheme, which will now move to a pilot phase, is being set up to give employees the opportunity to save their jobs and business. It won't work for all businesses, but where the insolvency is down to bad management not the lack of a market, then there is a real opportunity for the people who know the business best, the employees, to take it over."
"Business failures are endemic in the current climate, up by 7% to 17,000 in the last year. Our research has shown than co-operatives are a third less likely to fail than conventional business. Where viable businesses are struggling, our 'right to buy out' scheme offers an opportunity."
Alongside this, Co-operatives UK has produced a new guide to support worker co operatives, the worker co-operative code of governance, which provides helpful guidance on governance and management for employees running their business co operatively.
The guide has been produced by leading practitioners from worker co-operatives and will be distributed to all employee owners of co-operatives.
The guide can be downloaded at www.uk.coop/workercode.
Posted at 16th November 2012
Footballers, innovators and retailers win the Co-operative Awards 2012
by Ethos Admin
A fan owned football club, large retailer and fair trade coffee supplier were the three winners of the prestigious Co-operative Awards 2012, which recognise the excellence, innovation and impact of co-operatives and mutuals across the country.
The awards, organised by Co-operatives UK, were announced at an international gala dinner of 900 people at Co-operatives United in Manchester, a global festival and exhibition taking place in Manchester this week.
Midcounties Co-operative, a retailer trading in a range of business areas including food, pharmacy and energy, won the Co-operative of the Year Award, sponsored by Cobbetts LLP – for overall excellence in relation to performance on all aspects of running a successful co-operative.
Midcounties Co-operative has demonstrated excellence in the areas of business and commercial performance with operating profits in the co-operative's last financial year increasing from £18.1 million to £20.9 million, a commitment to employee engagement as well as sustained benefits to members, society and the environment.
Equal Exchange, a fair trade coffee supplier, won the Small Co-operative, Big Achiever Award, sponsored by Chelmsford Star Co-operative Society – for a small co-operative, with a turnover of up to £5 million that has made a big impact with an innovative project or projects.Equal Exchange has, amongst other initiatives, demonstrated a continued dedication to packing products at source, adding revenues, employment and new skills in the areas its members operate.
FC United, a fan owned football club, won the #coops2012 Award, sponsored by the Heart of England Co-operative Society – for the co-operative which has actively used a variety of media (radio, press and social media) to promote how their co operative is building a better world through co operation during 2012.
FC United has used a variety of media to engage with its fan base with the long term aim of changing football for the benefit of supporters. The club has also held several events in conjunction with local organisations aimed to bring people in the local community together in order to build a better world through sport and community achievement.
Ed Mayo, Secretary General of Co-operatives UK, said: "The Co-operative Awards 2012 celebrate the business success and ethical values of co-operatives and mutuals in the UK."
"The winners of this year's awards stand out amongst very high calibre entries as businesses that are innovating, promoting co-operative enterprise and performing well all round."
Ben Reid, Chief Executive of Midcounties said: "It has been an exciting 12 months as we have developed and expanded our food, energy, childcare and travel businesses in particular. We have had the confidence to invest and diversify despite the challenging economy because we believe in the co-operative way of doing business. Winning Co-operative of the Year is a fine endorsement of our approach."
Andy Walsh, FC United's general manager, said: "The club's media work not only helps spread the word about FC United and supporter-ownership, but also gives many of our co‑owners the chance to be involved, develop their own skills and take responsibility for running an important element of the club."
Photo shows Andy Walsh collecting FC United’s award from Hanne Hoeke of Heart of England Co-operative Society.
Posted at 2nd November 2012
Co-operatives UK urges government to help communities take control of their energy
by Ethos Admin
Co-operatives UK, along with a coalition of national organisations, has urged the government to implement a series of policies designed to dramatically increase the number of communities that can control, generate, save and benefit from their own clean energy.
Leading figures from across the co-operative movement, the charity sector and the Church of England met Ed Davey MP, Secretary of State for Energy and Climate Change, to launch a ‘manifesto for a community energy revolution’ which sets out a series of policy measures to increase community owned renewable energy and energy efficiency projects.
Co-operatives UK has also released a report by Cornwall Energy which investigates how community energy will be affected by the forthcoming Energy Bill. The report concludes that under the current proposals, community energy will be severely disadvantaged in the new energy market. Co-operatives UK will call upon the government to make the new system work for community and co-operative projects.
Estimates show that the potential for community owned renewable energy installed by 2020 in the UK to be a significant 3.5 GW, the equivalent of four conventional power stations. Said Ed Mayo, Secretary General of Co-operatives UK, said: "There is huge enthusiasm for co-operatively owned energy. But it is very difficult for co-operatives to compete in the energy market, as regulations and incentives are designed for the bigger players. With the forthcoming Energy Bill, and the Community Energy Strategy, government has a chance to put this right, and make sure that co-operative and community schemes can contribute to a diverse low-carbon energy economy."
The manifesto calls on the Government to introduce a comprehensive and integrated framework of support to help achieve this potential, including:
• national targets for community energy;
• promotion of community ownership as the route to increased public acceptance;
• the introduction of Government-backed advice and support services;
• and a financial framework including a higher community feed-in tariff and access to finance through the Green Investment Bank.
Paul Monaghan, Head of Socials at The Co-operative, said: “The majority of people in the UK want to see a massive increase in renewable energy, however, there is a powerful minority set against this. Community-owned renewables offer a brilliant way to break this log jam, and this Manifesto sets out what needs to happen in order for this to happen. Our towns, villages and districts are full of hundreds of groups all chomping at the bit to do their bit to generate and save energy locally and fight climate change."
Patrick Begg, Rural Enterprise Director at the National Trust, said: “We know that when communities secure a stake in energy projects they are much more reassured that their own beautiful and fragile local landscapes and villages can embrace the proposals. Community energy can help empower local people to take control of their own energy futures and in a style that maintains and even enhances what makes local places special and cherished. We, like the rest of the Community Energy Coalition, are ready to work with the Government to support a big increase in community owned renewable energy and in particular create a step change in energy efficiency schemes.”
The full report is available at www.uk.coop/energymanifesto
Posted at 18th October 2012
Government launches new service to grow a sustainable market for ‘community shares’
by Ethos Admin
A new service for the growing number of communities wanting to raise finance for co-operative and community-owned enterprises is launched today, by the Minister for Communities and Local Government, Don Foster.
For residents wanting to save their local pub, fans aiming to take ownership of their football club or local people intending to produce their own renewable energy together, community share offers are proving a vital lifeline for communities across the country.
Registrations of such enterprises have tripled over recent years, with increasing numbers raising capital through 'community share' offers, where money is invested co-operatively by local people as members in local enterprises.
Since 2009, according to new figures also released today, fifteen thousand people have invested in over 100 community share issues, raising over £15 million. The leading community share offers include energy co-operatives, football clubs and local pubs.
Dividends are paid in money, but also in kind, with cheaper energy, cut-price pints, and local, fairly-priced food. As well as providing a financial return to local people, community shares engage people to take a more active role in their communities.
Communities and Local Government Minister Don Foster launched the Community Shares Unit as part of his keynote address at the Community Development Finance Association annual conference today. The government-backed service is run by Co-operatives UK and Locality, and is now open for business.
Don Foster said; "We are shifting control away from Whitehall, handing communities the powers they need to run their own affairs.
"Across the country, communities are showing they have the ambition and determination to secure ownership of important local assets and get new projects off the ground.
"We want to create the conditions in which social investment and community finance can flourish to make this happen. This new unit will give them the helping hand they need to take full advantage of the opportunity to do things their way, in the best interests of their area.
Ed Mayo, Secretary General of Co-operatives UK, said: "With the banking sector in a state of turmoil, we’ve seen more and more communities taking things into their own hands. They are investing co-operatively in local enterprises themselves, whether that’s football or farming, retail or renewables."
Hugh Rolo, Director of Innovation at Locality, added: "We are delighted that the Department for Communities and Local Government are supporting one of the fastest growing areas of social investment. Community shares generate the right kind of finance and act as a powerful lever to access other funding, allowing communities to develop fully sustainable enterprises."
Interested parties are encouraged to visit the website
www.communityshares.org.uk to find out more and get in contact with the service.
Photo shows Cultivateoxford.org
Posted at 5th October 2012
Senior co-operative role announced for Scotland
by Ethos public relations
New data released by Co-operatives UK reveals that there are now around eighteen thousand jobs in the co-operative sector in Scotland. The data coincides with an announcement by Co-operatives UK that it is to strengthen its presence in Scotland with the creation of a new senior role.
Co-operatives UK has always operated across the whole of the United Kingdom, working closely with key partners in devolved nations – not only its members but also key government ministers and officials.
The new post, Strategic Relations Officer, not only reflects a desire to strengthen this presence in devolved nations but also the fact that there is a pioneering co-operative sector in Scotland, which is leading the way in key areas from renewable energy and agricultural co-operatives to creative co-operatives and employee buyouts.
New data from Co-operatives UK demonstrates the strength of the co-operative sector, showing that there are 578 independent co-operative businesses in Scotland, which between them have a turnover of £4 billion and employ nearly 18,000 people.
The strong Scottish co-operative sector reflects a wider trend of growth amongst co-operatives across the UK, which have outperformed the UK economy consistently and grown by over 19% since the start of the credit crunch in 2008.
Ed Mayo, Secretary General of Co-operatives UK, said: “As a national body we want to ensure that our work reflects the growth and opportunities for co-operative and mutual enterprise in Scotland.
“This post, working as part of a wider team across Britain and Northern Ireland, will help to raise the voice of our members in a devolved context."
The post has been developed closely with key members in Scotland and is likely to be based in Edinburgh.
Posted at 26th September 2012
Co-operatives UK launches online support service to help business advisors working with co-operatives
by Ethos public relations
With co-operatives continuing to enjoy a renaissance in spite of the current economic climate, Co-operatives UK has today launched the final phase of its online support service to assist business advisors working with co-operatives.
The ‘advise a co-operative’ online support service will help business advisors provide high quality assistance to people who are thinking about setting up a co-operative business.
The service, developed by the experienced team at Co-operatives UK, concludes a series of online support services from the national trade association, adding to the already up and running ‘start a co-operative’ and ‘grow a co-operative’ services launched earlier in the year.
The latest online support service strengthens Co-operatives UK’s position as the first port of call for anyone thinking about starting a co-operative – a business that is owned and run by its members.
The ‘advise a co-operative’ website will provide business advisors with:
- Specialist legal registration advice;
- Bespoke co-operative governance advice;
- Clear links to events, training and networking;
- Links to a range of relevant resources and publications.
Commenting on the launch of the final phase of the new online support service, Ed Mayo, Secretary General of Co-operatives UK, said: “Co-operative businesses as a whole have been outperforming the economy, growing by 21% since the start of the credit crunch in 2008, reflecting a turn to more trusted businesses following the financial crisis of the last few years.
“With more and more people exploring the co-operative options, this new support service brings together expert resources and advice to give business advisors key information about co-operatives and signpost them to specialists where needed.”
The online support service launches as part of the International Year of Co-operatives 2012 - a unique opportunity for co-operative businesses and their members and supporters to come together as a global movement to promote how co-operatives build a better world.
To access the new online support service for business advisors, please visit www.uk.coop/advise
Posted at 23rd August 2012
Co-operatives UK launches online support service for Third Sector and charitable organisations
by Ethos public relations
The national trade association for co-operatives – Co-operatives UK – has today launched a new online support service to enable more organisations to benefit from its established legal support service for the whole of the third sector.
For 30 years, Co-operatives UK has been providing specialist registration services to the community and voluntary sector and has helped over 400 third sector organisations register or restructure.
As the trade body that campaigns for co-operation and works to promote, develop and unite co-operatives, Co-operatives UK has unique tools and resources to help guide people through the early stages of setting up not just co-operatives but all kinds of third sector and charitable organisations.
Now, its new online support service will enable more people in the third and charitable sectors access vital information and legal expertise. The new online service will include:
- Access to Co-operatives UK’s experienced Legal Team, which offers high quality professional legal and governance advice and guidance to new start and established third sector organisations;
- A ‘set fee service’ which provides third sector organisations with bespoke legal support and deals with all regulatory bodies at a guaranteed price.
- An accessible guide through all of the basic steps to consider before setting up a third sector organisation;
- Case studies and examples of how other successful third sector and charitable businesses work;
- Links to relevant resources and publications.
“Our new Third Sector website makes our legal and registration services more accessible” says Ed Mayo, Secretary General of Co-operatives UK.
“We provide a comprehensive range of legal support services to third sector organisations - from model rules to governance guidance, company registration to new business structures.
“And our new website will be able to provide more help and support to organisations across the board – from small social enterprises who are just starting out to existing businesses looking to expand or established charities in need of affordable advice.
“Businesses can be assured that there are no hidden costs, with our set fee service,” Ed Mayo adds.
“And for those who require additional help, our team also provides a dedicated follow-on assistance and support programme.”
To access the new online support service for third sector organisations, please visit www.uk.coop/thirdsector/third-sector
You can also follow Co-operatives UK on Twitter @CooperativesUK and on Facebook - www.facebook.com/CooperativesUK
Posted at 15th August 2012
Nominations now open for The Co-operative Awards 2012
by Ethos public relations
To celebrate outstanding contribution to the co-operative economy, during this, The United Nations International Year of Co-operatives, Co-operatives UK is calling on co-operators across the country to enter The Co-operative Awards 2012.
The Co-operative Awards 2012 recognise excellence, innovation and ethics of businesses and individuals across the diverse co-operative movement and celebrate co-operation and the achievements of the UK’s most pioneering and inspirational co-operators.
Nominations for The Co-operative Awards 2012 are now open in the following categories:
- The #coops2012 Award
For the co-operative that has actively used a variety of media - including radio, press and social media – to help promote how it is building a better world through co-operation during 2012.
- Co-operative of the Year Award
For overall excellence in relation to performance on all aspects of running a successful co-operative enterprise.
- Small Co-op, Big Achiever
For a small co-operative, with a turnover of less than £5 million that has made a big impact with an innovative project or projects.
Open to all members of Co-operatives UK, the awards are free to enter and organisations can enter as many award categories as they wish. To enter, co-operatives must complete the online entry form and any supporting documents for each category that they wish to enter.
Award winners will be announced at the International Dinner and Awards to be held on 31 October 2012 as part of Co-operatives United - an inspiring global festival of events and exhibitions set in Manchester to mark the culmination of The United Nations International Year of Co-operatives.
Ed Mayo, Secretary General of Co-operatives UK, which is co-ordinating the awards, said: “The United Nations International Year of Co-operatives 2012 is a time to prove that co-operative enterprises are building a better world and The Co-operative Awards 2012 will be a shining example of co-operative businesses that are doing just that here in the UK.”
The deadline for nominations for The Co-operative Awards 2012 is 10 September, and shortlisted finalists will be announced on 28 September.
For more information on the Co-operative Awards 2012, please visit http://www.uk.coop/form/co-operative-awards-2012
Posted at 25th July 2012
Nisa joins Co-operatives UK as a mutual member
by Ethos public relations
Nisa, the UK’s leading member owned organisation of independent food and drinks retailers, has announced that it is to join Co-operatives UK, the trade association for co-operatives and mutuals.
The decision allows Nisa to strengthen its already strong mutual style model and offer to more than 1,000 independent retail businesses across the UK, which it provides with key services that help them remain competitive in the food and drink markets.
Nisa provides its small business members with buying power and a store support package as well as distribution services through its partnership with supply chain DHL. Despite the tough economic climate, Nisa has flourished, with a turnover of more than £1.5billion.
The organisation is now looking forward to strengthen its mutual advantages, of high trust and good value in a highly competitive retail market and to develop its services further to ensure that its members receive the widest and most effective range possible.
Neil Turton, Nisa chief executive officer, said: “As a member owned organisation, Nisa works for its members, providing them with significant benefits to help them develop their businesses. We are pleased to have become a member of Co-operatives UK and look forward to working with them to promote and develop co-operative enterprises.”
Ed Mayo, secretary general of Co-operatives UK, said: “The UK retail market has a vibrant and dynamic mutual presence, with consumer-owned, employee-owned and enterprise-owned brands on the high street. Co-operatives and mutuals are thriving in the UK as people turn to more trusted businesses. Nisa is a standout example of this – by providing a useful service to independent retailers it is growing itself whilst enabling local retailers to prosper in difficult times.
“We are delighted to welcome Nisa as a leading mutual enterprise into membership so it can strengthen its offer to members.”
Posted at 24th July 2012
Shortlist announced for £60,000 Community Buying Challenge Prize
by Ethos public relations
A rural oil provider and a discount website for household essentials are among a shortlist of seven organisations in the running for a £60k community buying innovation prize, it was announced today.
The shortlist for the ‘Buy Better Together Challenge’ - an exciting initiative to inspire new models of community buying - includes co-operatives, social enterprises, non-profit organisations and charities.
The community challenge prize, which was launched earlier in the year by Co-operatives UK and the Department for Business, Innovation and Skills (BIS) to encourage more people to think collectively and combine their buying power, received a total of 110 applications from all UK regions.
Community buying, which involves groups of individuals combining their buying power to purchase goods or services together and get better deals from shops and other suppliers, can help businesses spread their overheads and in turn lowers costs for consumers. The challenge was open to applications from groups and organisations within the public, voluntary or business sectors which wanted to create new or develop existing community buying schemes.
“I am very excited about this project,” said Norman Lamb, Consumer Affairs Minister.
“The challenge is not only bringing citizens together to strengthen their purchasing power so that they can get a better deal, but it has the fantastic advantage of bringing people together in a common endeavour.
“And the shortlisted seven reflect this very well. Not only do they highlight how people can benefit from getting the price down on things that they buy, for example energy or food, they are also bringing communities together and increasing the power of consumers.”
Both Co-operatives UK and BIS contributed £30k to the prize fund, which will go towards training and mentoring the shortlisted projects and includes £15k for the overall winner to develop their project.
Community Energy Plus has been shortlisted for its project - Cornwall’s Community Energy Club - which provides heating oil to residents across Cornwall, while the Northern Housing Consortium was chosen for its community buying project – Smarterbuys – a discount deal website that offers customers the chance to buy essential household goods at significantly reduced prices.
The full shortlist for the ‘Buy Better Together Challenge’ is:
- Carlisle and District Employee Food Buying Scheme, Sustainable Carlisle
- Smarterbuys, Northern Housing Consortium
- People & Planet's SCOOP project, People & Planet
- BEST (Buying Exchange Sharing Together)
- Scottish Community Food Network- Strength in Collective, Community Food Initiatives North east (CFINE)
- Cornwall's Community Energy Club, Community Energy Plus
- Caistor Energy Partnership, Caistor Energy Partnership
- People's Republic of Energy - online collaboration tool, Carbon Co-op.
The shortlisted entrants will now be asked to develop detailed business plans of their ideas, to be submitted by 22 October 2012, then finalists will be selected and invited to talk through their idea with a panel of experts in early November 2012 before the overall winner is chosen.
Nicola McCheyne, Project Delivery Team Manager at Community Energy Plus, said: “We are delighted to have reached the mentoring stage of the challenge. Community Energy Club was developed to empower our society’s most vulnerable householders, and ensure that everyone can access competitively priced heating oil. The opportunity to develop this into a robust business plan is very exciting."
Jo Boaden, Chief Executive of the Northern Housing Consortium (NHC) commented: “We are absolutely delighted to have been shortlisted for this competition. These are extremely challenging times, and we believe that anything we can do to help financially excluded and vulnerable people to get better deals for their money - and keep them away from high interest payment stores, payday loan companies and loan sharks - has to be positive. We’re passionate about the role that the Smarterbuys website can play in achieving this, as well as promoting digital inclusion. We’re looking forward to the next stage of the competition and to working with our appointed mentor.”
Ed Mayo, Secretary General of Co-operatives UK, said: “The ‘Buy Better Together Challenge’ was intended to help inspire new models of community buying and it is most certainly doing that.
“The response we have had from people sharing their ingenious ideas on ways of buying co-operatively has been tremendous and we look forward to seeing what innovative and exciting detailed plans our shortlisted seven submit next.”
To find out more about the ‘Buy Better Together Challenge’ please visit www.bis.gov.uk/buying/
You can also join the conversation on Twitter by using #communitybuy.
Posted at 20th July 2012
New figures show growth rate of employee owned businesses is 50% higher than the UK economy
by Ethos public relations
New figures on the employee owned business sector produced by Co-operatives UK will be announced by the Deputy Prime Minister, Nick Clegg, at the Employee Ownership Summit on 4 July.
Drawing on its annual digest of data, Co-operatives UK’s figures show that the UK employee-owned sector has grown at a rate of 1.1%, compared to 0.7% for the economy at large. As such, the growth rate for employee owned firms is over 50% higher than the economy at large.
Ed Mayo, Secretary General of Co-operatives UK, said: “Employee owned businesses are a key part of a co-operative sector that has been outperforming the wider UK economy since the start of the credit crunch 2008.
“These figures add to the growing body of evidence that employees with an ownership stake are more engaged and make for more resilient businesses.”
Iain Hasdell, Chief Executive of the Employee Ownership Association, commented:
“Employee owned businesses contribute around £30bn to the UK economy each year and I am delighted that their current rate of growth is confirmed in this important new data released by Co-operatives UK. This is further evidence that employee owned businesses are more resilient in economic downturns than their conventionally owned counterparts.”
Leading employee owned businesses in the UK include John Lewis Partnership in the retail sector, Suma Wholefoods in wholesale, Dulas in green technology and Leading Lives in public services.
The government will use the summit to publish the final report and recommendations of the Graeme Nuttall review of employee ownership.
Posted at 4th July 2012
Co-operative economy outperforms market for fourth consecutive year
by Ethos public relations
The UK’s co-operative economy has outperformed the UK economy for the fourth consecutive year, with a growth of 1.5% in 2011 compared with 0.7% in the UK economy, twice the rate of the UK economy.
Annual figures released today by Co-operatives UK, the trade body for co-operative businesses, show that while the real level of GDP in the UK in 2011 is 1.7% lower than in 2008, the turnover of the co-operative sector has grown by 19.5% over the same period.
‘The co-operative economy 2012 - alternatives to austerity’ details how a member-owned economy with a turnover of £35.6bn, has experienced an 8.9% rise in the number of co-operative enterprises from 5,450 in 2010 to 5,933 in 2011 and a 5.5% rise in the number of memberships from 12.8m in 2010 to 13.5m in 2011.
Retail (71.7%), agriculture (11.4%) financial services (6.2%) remain the dominant parts of the co-operative sector by turnover and co-operatives owned by consumers comprise (96%) of the co-operative economy’s value.
This annual report on the state of the sector is another clear indication that sharing ownership and control with members not shareholders and serving society and the environment alongside the pursuit of profit is a resilient and successful business strategy.
The largest co-operatives in 2011 include The Co-operative Group, John Lewis Partnership, Midlands Co-operative Society and United Merchants, the UK’s largest merchant co-operative and invoice clearing house for the building products industry with a turnover in excess of £850 million.
Areas seeing the largest growth include, renewable energy co-operatives that provide power, profits and strength to communities and the 242 co-operative schools now owned and controlled by communities, teachers, parents and pupils across the country.
Ed Mayo, Secretary General, Co-operatives UK, says: “This is good news for business and for our new emerging economy. At a time where our economic system is undergoing fundamental change and critical analysis as to its suitability for the future, this is evidence that broadening ownership and control, prioritizing social and environmental impact alongside profit is a resilient alternative to austerity.
“Co-operative businesses are more resilient, 98% are still in operation after three years compared to 65% of all businesses, over half of them (56%) are in disadvantaged areas in the UK and 88% seek to minimize their environmental impact when 44% of businesses say they have taken no action whatsoever .”
Download The UK co-operative economy 2012 – alternatives to austerity’ www.uk.coop/economy2012
For more news from Co-operatives UK, click here.
Posted at 28th June 2012
New App helps and rewards consumers making ethical choices
by Ethos public relations
A new app (launched on 19th June) will help consumers wanting to support co-operative and ethical businesses, by allowing them to search for local providers offering a wide range of products and services.
The app, called Co-operate, will also allow users to unlock discount vouchers for use in over 11,000 independently owned co-operatives outlets included in the app which cover every postcode in the UK, including food stores, pubs, restaurants, energy providers and travel companies.
The app has been created by Co-operatives UK, the trade organisation for the co-operative sector that campaigns to encourage greater co-operation, and is intended to tap into a growing desire from consumers to support socially responsible businesses.
Ed Mayo, Secretary General of Co-operatives UK, said: “With the ongoing economic troubles there is an increasing appetite amongst consumers to support a grassroots, ethical economy.
“One billion people around the world are members of co-operatives. Co-operate will make it easier for even more people to find and support these businesses.
“At the same time we’re hoping to provide a tangible demonstration of the power of co-operation both to reward consumers and to support the continued success of co-operative organisations.”
The launch of the app is just one of the initiatives to support International Year of Co-operatives, helping to highlight the size and diversity of the co-operative sector. It also marks the start of the build up to Co-operatives Fortnight (23 June to 7 July) where co-operatives across the UK will be working together to raise awareness of the difference co-operatives make to benefit their members and communities.
Ed continues: “Everyone in the UK has a wide range of co-operative businesses that are local to them or accessible online. As a result of shopping with Co-operative organisations people can make a positive choice to strengthen the economy of their local community and support a fairer and more socially responsible business model.
“By downloading Co-operate, even more people can be part of the good news. It is a tool for a better world.”
Co-operate will launch simultaneously across the UK and US (in partnership with the National Co-operative Business Association in the US) on Android and iPhone, with an iPad version to follow shortly after.
For more news from Co-operatives UK, click here
Posted at 19th June 2012
Britain is more neighbourly after the Diamond Jubilee celebrations – those who took part now know five more neighbours each
by Ethos public relations
Analysis by Co-operatives UK, drawing on a survey it commissioned through YouGov, has shown that one in four people (25%) across Britain took part in an event to mark the Queen's Diamond Jubilee.
According to calculations by Co-operatives UK, the national trade association for co-operative businesses, these events were organised co-operatively by 1.5million adults (including around a million women).
Those who came got to know, on average, five more neighbours each that they didn't know before.
The saying runs that if you want something done, ask a busy person and this held true for the Jubilee celebrations. Adults with children in their household were very well represented among those organising events[1] and the more children in the household, the more likely they were to help out with 4% of those with one child in their household compared to 7% with three or more organising an event.
The events overall succeeded in involving a good mix of ages - indeed young people aged between 18 and 24 were more likely to participate in events (28%) than those who have retired (22%).
One in five people (21%) report that community spirit in their neighbourhood has increased due to the Jubilee celebrations. However, the Jubilee was not celebrated evenly across the country - only 7% of people in Scotland, for example, took part in events, compared to 25% nationally.
The research by Co-operatives UK, shows that numbers of neighbours we know by name has halved over the last thirty years. Even so, according to calculations by Co-operatives UK, there are on average 24million conversations every day with neighbours, higher now than two years ago, in 2010.
The Good Neighbour Index tracks the percentage of people who, in the past two years, have been helped by their neighbours (74%), compared to those who have had problems with their neighbours (42%). Perhaps as a result of the events around the Jubilee, the Good Neighbour Index has risen by 5% over the last year – to a level of 48.5 where 100 represents the state of neighbourliness in the base year of 1982, according to calculations by Co-operatives UK. The index is highest, at present, in Wales.
Slightly less people report having problems or disputes with their neighbours than two years ago (42% vs. 44%). The top three complaints are: noise (affecting 22% of people); general behaviour (11%) and children's behaviour (9%). Compared to thirty years ago, the number of people making these complaints has increased threefold.
Three out of four people (74%) report that their neighbours help them out in some way. These include looking after pets (18%), taking in parcels and mail (63%) and keeping a spare key (24%).
“The UK is at heart a co-operative nation and the Jubilee celebrations gave us a permission slip to come together. With twelve million adults taking part in local events, this has been the largest recorded programme of voluntary social action in modern times,” said Ed Mayo, Secretary General of Co-operatives UK.
This year, 2012, has been named by the United Nations as the International Year of Co-operatives. The UK's five thousand co-operative enterprises are coming together later this month for a Co-operatives Fortnight (from 23 June to 7 July) to celebrate the role of co-operation in the UK economy and society.
[1] 4.65% of those with children in the household organised an event themselves compared with 3.12% of adults as a whole.
For more news from Co-operatives UK, click here.
Posted at 15th June 2012
Co-operatives UK launches second phase of online support service for co-operatives
by Ethos public relations
With co-operative businesses continuing to thrive despite the current economic climate, Co-operatives UK - the national trade association for co-operatives - has today launched the second phase of its online support service for co-operatives.
The ‘grow a co-operative’ service will provide assistance and support to co-operative businesses looking to develop and expand, with advice on how to access finance, recruit more members, launch new products or take current activities up to the next level.
The second phase follows on from the launch of the online support service for start-up co-operatives in April, with the final phase, focusing on providing business advisers with the support they need when working with co-operatives, due to launch in June.
The ‘grow a co-operative’ online support service will include:
-Specialist financial advice;
-Clear links to co-operative and community financial advisers;
-Case studies and examples of how other successful and expanding co-operatives work;
-Online films showcasing successful and growing co-operatives;
-Links to relevant resources and publications.
Commenting on the launch of the second phase of the new online support service, Ed Mayo, Secretary General of Co-operatives UK, said: “Co-operative businesses as a whole have been outperforming the economy, growing by 21% since the start of the credit crunch in 2008, reflecting a turn to more trusted businesses following the financial crisis of the last few years.
“With the co-operative way of doing business enjoying such a renaissance, the next stage of our new online support service will help people to develop their ideas and access the advice they need to build and develop sustainable co-operative businesses.”
The online support service launches as part of the International Year of Co-operatives 2012 - a unique opportunity for co-operative businesses and their members and supporters to come together as a global movement to promote how co-operatives build a better world.
To access the new online support service for start-up co-operatives, please visit www.uk.coop/grow
To read other news from Co-operatives UK click here.
Posted at 25th May 2012
Co-operatives UK launches online support service for start-up co-operatives
by Ethos public relations
With a surge of interest in co-operatives, the national trade association for co-operatives - Co-operatives UK - has today launched a new online support service for start-up co-operatives.
As the trade body that campaigns for co-operation and works to promote, develop and unite co-operatives, Co-operatives UK has unique tools and resources to help guide people through the early stages of setting up a co-operative business.
It provides assistance and support to help start-up co-operatives get off the ground and is at the heart of a national network of specialist co-operative business advisers who can provide further advice.
The new online support service will help to strengthen Co-operatives UK’s position as the first port of call for anyone thinking about starting a co-operative – a business that is owned and run by its members.
The new online support service for start-up co-operatives will include:
- An accessible guide through all of the basic steps to consider before setting up a co-operative;
- A useful quiz designed to help determine whether the co-operative option is the right one;
- Case studies and examples of how other successful co-operatives work;
- Links to relevant resources and publications;
- Clear links to specialist business advisers who can help make a co-operative dream a reality.
Commenting on the launch of the new online support service, Ed Mayo, Secretary General of Co-operatives UK, said: “The co-operative sector as a whole has been outperforming the UK economy since the start of the credit crunch, reflecting a turn to more trusted businesses following the financial crisis of the last few years.
“With the co-operative way of doing business enjoying such a renaissance, our new online support service will really help people to develop their ideas and access the advice they need to build sustainable co-operative businesses.”
The new online support service launches as part of the International Year of Co-operatives 2012 - a unique opportunity for co-operative businesses and their members and supporters to come together as a global movement to promote how co-operatives build a better world.
This is the first of three phases of the new online support service. In May, the second stage will focus on how to grow a co-operative. In June the final phase will focus on providing business advisers with the support they need when working with co-operatives.
To access the new online support service for start-up co-operatives, please visit www.uk.coop/start.
To read other news from Co-operatives UK click here.
Posted at 18th April 2012
Students lead the way when it comes to sharing
by Ethos public relations
As new research shows that almost double the number of full time students, at 20%, buy in bulk co-operatively compared to people who have retired (12%), a new £60k community buying innovation challenge is encouraging more people to go back to their heady student days and think collectively to combine their buying power.
Figures revealed by Co-operatives UK show the latest trend in young people’s buying habits is streets ahead, with students (31%) also more than three times as likely to buy and share items with others compared to the nation as a whole (9%).
“Students are best at sharing,” says Ed Mayo, Secretary General of Co-operatives UK, the national trade body for co-operative enterprises, “and they could teach us all a thing or two about buying co-operatively to help make our money go further.
“Living with debt is a fact of life for many full time students,” Ed Mayo adds, “yet they emerge in our research as the most financially astute group in the population when it comes to saving money.”
The research, as part of Co-operatives UK’s ‘Buy Better Together Challenge’ in partnership with The Department for Business, Innovation and Skills (BIS), reveals that 20% of full time students regularly buy in bulk with others in order to reduce costs compared to just 12% of people in retirement.
The ‘Buy Better Together Challenge’ is an exciting initiative to help inspire new models of community buying, stimulate enterprise and promote shared learning and both Co-operatives UK and BIS have contributed £30k to the prize fund.
Community buying, which involves groups of individuals combining their buying power to purchase goods or services together and get better deals from shops and other suppliers, can help businesses spread their overheads and in turn lowers costs for consumers. The challenge is now open to applications from students as well as groups and organisations within the public, voluntary or business sectors, which focus on creating new or developing existing community buying schemes.
To give guidance to applicants there are three challenges. They are:
- Challenge One: A project aimed at creating a platform, tool or vehicle to help individuals to come together and form a community buying group.
- Challenge Two: A project aimed at enabling existing or new community groups to develop their purchasing power by working collectively.
- Challenge Three: A project aimed at businesses to empower their employees or consumers to group for community buying.
The ‘Buy Better Together Challenge’ £60k pot will go towards training and mentoring for stand out projects and includes £15k for the overall winner.
Norman Lamb, Consumer Affairs Minister, said: “Students are a resourceful bunch and this shows that they already understand the benefits of buying collectively. The Buy Better Together Challenge is a fantastic partnership between BIS and Co-operatives UK and gives groups a great opportunity to deliver real deals and social benefits for their communities.
“I would encourage everyone to get involved, read the guide on how to get started and submit an entry on the website. Community buying has a range of uses to give consumers a bigger voice - from food co-operatives to heating oil groups - and I look forward to seeing the innovative ideas later this year.”
Ed Mayo adds: “Co-operative buying, whether informal with friends, student food co-ops or of crowd-sourcing online, is a growing trend among consumers and a good way to make your money go further. The ‘Buy Better Together Challenge’ is intended to stimulate enterprise and promote shared learning and we look forward to receiving many innovative and inspiring ideas!”
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2069 adults of which 64 were full time students. Fieldwork was undertaken between 13th - 15th February 2012. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).
To find out more about the ‘Buy Better Together Challenge’ and to complete an application form, please visit www.bis.gov.uk/buying/. You can also join the conversation on Twitter by using #communitybuy. If you would like to speak to somebody in more detail about the Challenge, please call the helpline number – 0207 215 6570.
To read other news from Co-operatives UK click here.
Posted at 29th March 2012
Co-operatives UK publishes new guide to help Move Your Money
by Ethos public relations
To coincide with Move Your Money month this March, Co-operatives UK - the trade association for co-operative enterprises – is publishing a ‘Little Book of Money’ to help people move their money to more ethical banks.
The Move Your Money campaign which launched earlier this year, hopes that March will see people across the UK pledging to move their money to fairer and more local forms of banks.
And in support of Move Your Money Month, Co-operatives UK is producing a short guide to moving current and savings accounts to co-operative and mutual providers such as credit unions, building societies and The Co-operative Bank.
The 'Little Book of Money' provides a light and informative guide to why and how to move money to a better bank. It includes:
- A short history of banking
- A short history of mutual finance
- An outline of the key co-operative and mutual banking options
- Why move your money
- How to move your money.
Ed Mayo, Secretary General of Co-operatives UK, said: “Bank switching is more fun than bank bashing and it is more likely to be effective too. There are now co-operative and mutual options across the UK for current accounts, savings and investment.
“This guide, based on the experience of people who have already moved their money, will help make it easy for you to join in.”
Danielle Paffard, Move Your Money spokesperson, said: “Empowering consumers to understand and engage with ethical, social and mutual financial institutions strengthens the alternative banking sector, intensifies pressure on the big five banks and gives greater cause to the political agenda for change.
“During Move Your Money Month we hope to see people across the country joining the movement to build a better banking system.”
10 Tips On How To Move Your Money
1. Your choice. You have more choice than you think. Member-led organisations include building societies, credit unions and organisations like The Co-operative Bank.
2. Every day or rainy day? Decide whether you wish to move your current account, your savings account or both.
3. Make it personal. Decide what matters to you with a new account. Is it the functions such as internet access, financial returns, interest rates and ethical policy or assurance of good service?
4. Prepare to make a statement. Make opening an account easier by having the following ready: two forms of Identification, one form of photograph identification, a proof of address (such as an old bank statement), your national insurance number and your old bank account details.
5. An open and shut case. You can open your new account without closing your old one. Choose to manage this yourself or ask the new bank who will do this for you.
6. Let standing orders stand. Completing a switch form allows your new bank to transfer all standing orders and direct debits to your new account.
7. Be assured. If the move goes wrong then you have got consumer rights to put things right. Start complaining to your bank and escalate the complaint to the Financial Ombudsman Service if you are not happy.
8. Membership matters. Remember, when you open an account you can also become a member. Take a look at the benefits.
9. Spread the word. Let others know by adding your name to the Move Your Money campaign www.moveyourmoney.org.uk.
10. Feel good. Congratulations, you have chosen to make your finances fair trade.
Visit www.uk.coop/moveyourmoney to download the ‘Little Book of Money’.
To read other news from Co-operatives UK click here.
Posted at 1st March 2012
New £60,000 Community Challenge Prize now open to applications
by Ethos public relations
As new figures show that over eight million people - almost a fifth of people in the UK - buy in bulk co-operatively, a new £60k community buying innovation challenge opens to applications today.
The ‘Buy Better Together Challenge’ is encouraging more and more people to think collectively to combine their buying power.
The research, carried out by Co-operatives UK, the national trade body for co-operative enterprises, reveals that 17% of people already buy in bulk with others.
The community challenge prize, launched by Co-operatives UK and the Department for Business, Innovation and Skills (BIS) hopes to see this increase throughout 2012 by encouraging new models of community buying.
The ‘Buy Better Together Challenge’ is an exciting initiative to help inspire new models of community buying, stimulate enterprise and promote shared learning and both Co-operatives UK and BIS have contributed £30k to the prize fund.
Community buying, which involves groups of individuals combining their buying power to purchase goods or services together and get better deals from shops and other suppliers, can help businesses spread their overheads and in turn lowers costs for consumers.
The challenge is now open to applications from groups and organisations within the public, voluntary or business sectors, which focus on creating new or developing existing community buying schemes.
To give guidance to applicants there are three challenges. They are:
- Challenge One: A project aimed at creating a platform, tool or vehicle to help individuals to come together and form a community buying group.
- Challenge Two: A project aimed at enabling existing or new community groups to develop their purchasing power by working collectively.
- Challenge Three: A project aimed at businesses to empower their employees or consumers to group for community buying.
The ‘Buy Better Together Challenge’ £60k pot will go towards training and mentoring for stand out projects and includes £15k for the overall winner.
Norman Lamb, recently appointed Consumer Affairs Minister, said: “The Buy Better Together Challenge is a fantastic partnership between BIS and Co-operatives UK and gives groups a great opportunity to deliver real deals and social benefits for their communities.
“I would encourage communities and businesses to get involved, read the guide on how to get started and submit an entry to the challenge on the website. Community buying has a range of uses to give consumers a bigger voice - from food co-operatives to heating oil groups – and I look forward to seeing the innovative ideas later this year.”
Ed Mayo, Secretary General of Co-operatives UK, said: “Co-operative buying, whether informal with friends, student food co-ops or of crowd-sourcing online, is a growing trend among consumers and a good way to make your money go further. Our research shows that almost 20% of people are buying co-operatively and with household budgets under such a squeeze, we are finding more interest than ever in co-operative models of business.
“The ‘Buy Better Together Challenge’ is intended to stimulate enterprise and promote shared learning and we look forward to receiving many innovative and inspiring ideas!”
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2069 adults. Fieldwork was undertaken between 13th - 15th February 2012. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).
To find out more about the ‘Buy Better Together Challenge’ and to complete an application form, please visit www.bis.gov.uk/buying.
You can also join the conversation on Twitter by using #communitybuy. If you would like to speak to somebody in more detail about the Challenge, please call the helpline number – 0207 215 6570.
To read other news from Co-operatives UK click here.
Posted at 21st February 2012
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