changing the way we do business

As we seek to rebuild the economy there has never been a time in which the co-operative and mutual ideal has been more important. As the global economy faces difficult challenges, we need to pioneer a new way of doing business; that will underpin the long term stability of the UK economy, and ensure that all people will be able to share in its rewards.

Supporting co-operative and mutual enterprise
Co-operative and mutuals differ from their PLC competitors in one crucial respect; they exist to provide a service for their members rather than to generate profits for external shareholders. As a key part of the plurality of the UK economy, the Government should ensure that every assistance is given to the preservation and creation of co-operative and mutual businesses.

Employee Ownership
Giving employees a stake in their business provides workers with economic gains and creates companies that are responsive to their frontline staff. Firms where staff have a big ownership stake and a say in decisions do not just create happier workers, they also make more productive businesses. We believe that the achievements of the co-owned sector should be recognised and built upon.

Fighting the Recession
In face of what could potentially be the most serious downturn since the depression of the 1930s, we must utilise all the resources, skills and capital that we have at our disposal. Co-operative and mutual enterprises can play a key role in responding to the recession, mitigating its impact and creating a more resilient economy.

Remutualisation
The financial crisis has come at a serious cost to everyone in the UK; whose savings have been risked, whose taxes may have to rise and whose livelihoods are threatened by the recession that has followed. It is vital that we learn from our mistakes and build more stable foundations for our financial sector in the future. That is why we believe all fully nationalised banks should be converted into mutuals, as this is the best solution for ensuring a stable, long-term future for these companies, and making sure that the risk taken by taxpayers will deliver for consumers.
Get involved in 'The Feeling's Mutual' campaign.

Access to Finance
We need to do more to ensure that our financial services industry meets the needs of the whole UK economy. In this country it is primarily credit unions that offer affordable credit and banking services to thousands who would otherwise be unbanked. It is important that the Government continues to assist credit unions to ensure that they are strong and sustainable. This will involve expanding the range of services that credit unions are able to offer so that they can offer the maximum assistance to ordinary people in these testing economic times.

A New Settlement Between Banks and Society
Given the unprecedented support our financial institutions have received in the past year, it is vital that they recognise the obligation of their responsibility to society. We should introduce a Financial Inclusion Act, which would ensure that all people have equal access to routine financial services and credit within their means.

Land Reform
As we seek to bring stability to the financial system, it is only right that we aim to do the same for the property markets. A key policy concern for the future has to be to keep growth in house prices consistent with other parts of the economy. We should use taxation to change incentives within the property market, ensuring that we incentivise the productive
use of land rather than expected capital gains in an upward market.

Investing in a co-operative future
Investment needs to be not only focused on what it can generate for individuals but also what it could provide for the community. The self-help model of funding can not only offer a safe and robust investment for individuals, but also provide us with services that can collectively improve our lives.

Public Infrastructure
At a time when public sector borrowing remains high and private sector
capacity to invest remains limited, we should explore the creation of new mutual organisations
to build tomorrow’s infrastructure

An economy in all of our interests
For the foreseeable future, it is likely that most significant enterprises will continue to be owned by shareholders. Building a private sector more in tune with co-operative values is necessary if we are to avoid repeating the mistakes of the past. Through reconnecting our firms with all of their stakeholders and society we can transform the nature of business in this country – building an economy that acts in all of our interests.

For full details of our poliices on economic issues, please view our draft manifesto.