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Co-op News (August 2019)

What is co-operative culture - and why does it matter? This issue looks at how co-op values intersect with the values in organisations, across movements and between countries. Plus 100 years of the Channel Islands Co-operative – and how the new Coop Exchange app is tackling the capital conundrum.

What is co-operative culture - and why does it matter? This issue looks at how co-op values intersect with the values in organisations, across movements and between countries. Plus 100 years of the Channel Islands Co-operative – and how the new Coop Exchange app is tackling the capital conundrum.

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NEWS<br />

RETAIL<br />

Campaign urges UK government to set the target<br />

of one million worker-owners by 2030<br />

A new campaign by <strong>Co</strong>-<strong>op</strong>eratives UK<br />

and the Employee Ownership Association<br />

(EOA) is calling on the UK government<br />

to invest £2m in its upcoming spending<br />

review to support a voluntary expansion<br />

of the employee and worker-owned<br />

business sectors.<br />

Due to be published this autumn, the<br />

spending review will cover the 2020-2021<br />

period, setting detailed departmental<br />

allocations. <strong>Co</strong>-<strong>op</strong>eratives UK and<br />

EOA believe that increasing employee<br />

and worker-ownership can help the<br />

government achieve its objectives for a<br />

more productive, inclusive and balanced<br />

economy, supporting its own aims in the<br />

Good Work Plan and playing a key role in<br />

the Industrial Strategy.<br />

The #1MillionOwners campaign calls<br />

for £2.17m to be allocated over the next<br />

three years, with an ambition to create<br />

one million worker and employee-owners<br />

by 2030. Through the scheme, five local<br />

enterprise partnerships (LEPs) would work<br />

to address the biggest barriers to employee<br />

and worker ownership, such as raising<br />

awareness, practical understanding and<br />

advice among entrepreneurs, business<br />

owners, workers and advisers.<br />

In Scotland, the government is investing<br />

£500,000 through Scottish Enterprise to<br />

support employee ownership and tackle<br />

these barriers. The campaign highlights<br />

how an independent evaluation for<br />

<strong>Co</strong>-<strong>op</strong>erative Devel<strong>op</strong>ment Scotland<br />

found a tenfold return on investment<br />

in gross value is added for every pound<br />

invested in on-the-ground support to grow<br />

employee and worker-ownership.<br />

The Scottish government aims to<br />

increase the number of employee and<br />

worker-owned businesses from 100 to 500<br />

by 2030. The campaign suggests the UK<br />

government set a similar target.<br />

Ed Mayo, secretary general of<br />

<strong>Co</strong>-<strong>op</strong>eratives UK, said: “When it comes<br />

to reducing wealth inequality, driving<br />

employee engagement and tackling<br />

regional resilience, employee and worker<br />

ownership offers a proven solution.<br />

“The UK’s best employee-owned<br />

businesses and leading worker co-<strong>op</strong>s<br />

can be the answer to a more inclusive<br />

economy at a time of great economic<br />

uncertainty. We’re urging Westminster<br />

to match the Scottish government’s<br />

ambition for a fivefold increase in the<br />

number of employee and worker owned<br />

businesses by 2030.”<br />

Deb Oxley, chief executive of the<br />

EOA, said: “Now is the time for UK<br />

government to invest in creating more<br />

businesses that have a proven record<br />

of accomplishing and sustaining higher<br />

productivity, greater economic resilience<br />

and having a wider impact on the regions<br />

they <strong>op</strong>erate in.”<br />

She added: “Not one dissenting voice<br />

has followed recent high-profile employee<br />

ownership transitions such as Riverford<br />

Organic, Aardman Animations and Richer<br />

Sounds. In fact, there was unilateral<br />

political support as well as a positive<br />

endorsement by commentators in tabloids<br />

and broadsheets.<br />

“We have great examples from across<br />

the UK of employee and worker-owned<br />

businesses of doing well while doing good<br />

– it is very clear the UK would benefit from<br />

having more of them.”<br />

Also backing the campaign is Julian<br />

Richer, founder of Richer Sounds, who<br />

recently handed control of the business<br />

to its staff by placing 60% of the company<br />

into an employee ownership trust (EOT).<br />

He said: “To me, the decision to sell the<br />

company to my colleagues was an obvious<br />

one. Nobody knew my business better<br />

than the pe<strong>op</strong>le in it and we’d created a<br />

culture together.<br />

“To sell to the highest bidder would<br />

have created wealth for one or two<br />

pe<strong>op</strong>le. Instead, using the EOT model, we<br />

will sustain the value we create for the<br />

individual, the business and the economy<br />

for the longer term.”<br />

One of the largest worker co-<strong>op</strong>s in<br />

the UK, Suma, is also supporting the<br />

campaign. Ross Hodgson, Suma member<br />

said: “Worker ownership has been the key<br />

to our success over the last 40 years.<br />

“All our members are paid the same<br />

and are given an equal say in how the<br />

business is run, with each carrying out<br />

a range of jobs across our co-<strong>op</strong>. We<br />

support the campaign to create and<br />

support more worker-owners and urge the<br />

government to commit funding to grow<br />

the sector.”<br />

AUGUST <strong>2019</strong> | 5

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