loading . . . A record-breaking year for UK co-operatives and mutuals Figures published today (23 September) have revealed a record-breaking year for the UK’s co-operative and mutual economy.
The Co-operative and Mutual Economy Report 2025, produced by Co-operatives UK, reveals that more than 10,000 co-ops and mutuals have generated a record combined income of £179.2bn and employ over 1.5 million people. This represents a 5.5% income increase year-on-year alongside a 6.5% boost in total business numbers.
There are now 16.6 million co-operative members across the UK, up from 15.2 million from last year.
“From supermarkets to pubs and social housing providers to football clubs, it is wonderful to see record numbers,” said Rose Marley, CEO of Co-operatives UK.
“These figures demonstrate the growing strength of the mutual movement within the economy. Co-operative businesses make an outsized economic contribution, are more resilient and better represent society in the boardroom and within executive teams.
“As part of Labour’s election manifesto, the government set out its ambition to double the size of the sector. We are moving in the right direction, but at the current pace, it will take far too long. With the right policies, co-operatives can achieve that growth in a single decade, bringing inclusive growth, resilience, and wellbeing to more people and communities across the UK.”
The UK movement now comprises 10,119 enterprises and more than 65.7 million memberships (almost the size of the UK population), employing 1.6 million people, says the report.
In particular, building societies now hold 29% of mortgage balances and 23% of UK savings balances, delivering £2.3bn more in interest to savers than large banks, while mutual insurers serve 25.5 million members, paying out £91.5m in income protection benefits in 2024.
Worker co-ops have also stabilised after years of decline, while employee-owned businesses (EOBs) are the fastest-growing part of the UK’s democratic economy. Numbers rose by almost a third (31.5%) to 2,337 in just 12 months, with a combined turnover of £24.9bn.
This growth has been spurred by employee ownership trusts (EOTs), introduced by the government in 2014, says the report. These offer strong tax incentives for business owners selling to their employees, and the rise shows “how targeted government policy can unlock rapid expansion of democratic ownership at scale”.
**Related:Community businesses boost local economies and services, says report**
“One area where our movement is leading by example – which I’m delighted to highlight – is gender parity,” said Marley. The report notes that 24% of the UK’s top 100 co-ops are led by women CEOs – compared to just 9% in the FTSE 100. “This leadership is matched by a narrower gender pay gap, fairer distribution of women in senior roles, and a higher proportion of co-operatives paying the Living Wage.”
The report also presents several case studies, from pubs and leisure co-ops to technological innovations.
It cites Greenwich Leisure Limited, the UK’s largest provider of public leisure and cultural services – operating more than 370 leisure centres, libraries, gyms, pools, sports facilities and children’s centres across the country. It is also the UK’s largest charitable social enterprise and a worker-owned co-op, which reinvests all surpluses back into its services and communities – more than £100m to date.
The report also tells the story of Co-operative Network Infrastructure (CNI), which offers a radical alternative in a digital world dominated by closed networks, private control and long-term commercial lock-ins.
The co-operative enables its members – both public and private – to share access to digital infrastructure they already own (including fibre-optic cable and data centres) with other members of the co-op. Rather than building competitive, proprietary networks, members collaborate to create connected systems that reduce costs, increase access, and support local economic development.
Another example in the report is the New Clarence in Hull – a city-centre pub with deep roots in the co-operative movement which was saved from being redeveloped into a 20-bed house of multiple occupation.
Originally a co-op store in 1919 and later, a meeting space and education centre for local co-operators, it has long been a gathering spot for choirs, local history groups, men’s health circles and even adult Lego fans. When the building was listed for sale in 2023, a group of regulars launched a successful campaign to turn it into a community asset.
Work to transform the space includes a restored Victorian function room and energy retrofit, and the team is exploring ways to cut emissions in half. “We’re not just restoring a building,” said the organisation’s Catherine Murray. “We’re creating a sustainable, accessible space that will serve our community for generations. There’s a real sense of ownership. It’s not just our pub – it’s everyone’s.”
The report highlights co-operatives as critical in delivering the UN Sustainable Development Goals (SDGs) – from gender equality and fair work to sustainable communities – and applauds the fact the UN designated 2025 the second International Year of Cooperatives.
“This renewed recognition reflects a simple truth: co-operatives are uniquely placed to deliver inclusive, sustainable development and to help shape the fairer future we all need,” it said. “It’s not just us saying it. The United Nations is actively backing co-operatives.”
But despite these successes, more can be done, and Co-operatives UK calls for a number of government actions, including better access to finance and a modernised co-operative law following the recommendations of the Law Commission and aligned with international standards.
“More specialist institutional investment, partly backed by government, could unlock large-scale private financing in start-ups and growth-stage co-operatives, including from communities, members and impact capital,” it says, adding that the British Business Bank “can do more to enable co-operatives at start-up and scale-up” while a new Social and Environmental Investment Tax Relief “would incentivise more private wealth investment in co-operatives.
The report also calls for stronger co-op development infrastructure via support for new-starts, training, and specialist advice – and fairer tax treatment.
“The UN International Year of Co-operatives is a once-in-a-decade platform to show the UK public and policymakers that co-operatives are central to building a fairer economy and achieving the Sustainable Development Goals,” said Marley.
“More policies that encourage democratic ownership and expand the role of co-operatives and mutuals, in everyday sectors including farming, infrastructure and public services, will make a transformative difference.”
_Read the full 2025 Co-op Economy Report here._ https://www.thenews.coop/a-record-breaking-year-for-uk-co-operatives-and-mutuals/
