The mutual and co-operative sector has called on the next UK government to support businesses with purpose beyond profit.

The sector wants government to create a “meaningful covenant” between mutuals and co-operatives, and government and society based on the purpose-driven business model that delivers tangible benefits to communities and wider society.

In a joint Prospectus published today (30 November), the mutuals and co-operatives trade associations said there is no ambiguity in the actions they want the next government to implement.

They include creating an environment that places mutuals and co-operatives at the heart of economic strategy and supporting the growth of the mutual sector, delivering a legislative and regulatory framework that enables mutuals and co-operatives to meet the needs of the communities they serve and compete fairly with other businesses.

And creating and preserving capital to support new and growing mutuals and co-operatives.

Mutual and co-operative businesses make a significant contribution to the economy. The sector’s combined annual revenues stand at £87.9 bn which equates to 3.5% of UK GDP.

They also provide greater consumer choice while delivering ‘mutual value’ to their members and wider society.

However, their different legal and regulatory frameworks prevent mutuals from competing on a level playing field with their competitors.

They want to see that change because they offer a competitive alternative to shareholder-owned businesses and play a vital role in building an inclusive, growing, and diverse economy.

Following the launch of the prospectus, the sector has planned a series of parliamentary events across the UK in the new year to engage face-to-face with politicians from all parties.

The aim is to build understanding of the value mutual organisations bring to the economy, and to garner support for the actions required to maintain that mutual value.

Policy roundtables will also be held in Cardiff, Edinburgh, London and Manchester in January and February 2024 to convene influential and supportive politicians and influencers to agree what mutuals have to offer and how to ensure this potential is harnessed by the next government.

The mutuals and co-operative trade associations include Association of British Credit Unions, Association of Financial Mutuals, Building Societies Association, Co-operatives UK and the National Liaison Group.