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The Bevy, in Brighton, was rescued from closure by local residents who recognised the pub’s value as a community hub. Now thriving, The Bevy not only provides a social space, but also runs food programmes for vulnerable people, offers free meeting spaces for local groups, and reinvests profits back into the community.

West Yorkshire-based Suma is an award-winning wholefoods distributor with annual income upwards of £60 million. It delivers over 7,000 vegetarian, natural, responsibly sourced products to businesses and communities across the UK and internationally. It is also one of the largest equal pay businesses in Europe. 

Both are very different businesses and both are co-operatives. They are proof that you can be commercially successful and at the same time do more for people and planet. There are many, many other examples in the ‘democratic economy’. We have agricultural co-operatives turning over billions of pounds annually; building societies with millions of members; supermarkets (including the UK’s biggest co-operative); creative co-operatives; community-owned dentists... The list goes on.

The United Nations recognises the unique impact of co-operatives and mutuals. It designated this year – 2025 – as the International Year of Co-operatives because of the contribution our sector makes to the UN Sustainable Development Goals (SDGs). Co-operatives and mutuals are proven to be resilient and inclusive. We just need  more. More awareness – and more member-owned businesses.

The UK government’s manifesto pledge to double the size of the co-operative and mutual sector presents a historic opportunity. By harnessing the power of democratic business models we can address major societal challenges, including inclusive economic growth and the climate emergency. But achieving this ambition requires the right conditions for new co-operatives and mutuals to form - and for existing ones to scale and thrive.

Our identifies eight national-level growth areas where high-impact co-operatives can drive economic and social value:

• Community co-operation - strengthening local economies through democratic ownership.
• Food system - building resilient, fair, and sustainable supply chains.
• Digital - supporting platform co-operatives and tech-driven democratic enterprises.
• Public services - expanding democratic models for essential services.

We will also support growth in worker co-operatives, net zero initiatives, housing, and financial services.

Our latest report reveals a record-breaking annual income of £165.7 billion. This surge, bolstered by the inclusion of NHS Foundation Trusts, underscores the increasing relevance of democratic business models across all sectors. With 9,342 independent businesses and 68.8 million members, the co-operative and mutual sector is a growing force with massive potential.

The report evidences that building societies deliver strong financial value to their 26.2 million members. Meanwhile, the number of employee-owned businesses has shot up by 16.4%, with a 250% increase over five years, showing that rapid growth is possible, if the right conditions are in place.

The increase in community-owned enterprises, particularly pubs, demonstrates the same – with numbers rising 49.5% over five years. Credit unions are also flourishing, with income up 27.6% and an additional 100,000 new members.

Despite these successes, there are barriers to growth. Worker co-operatives suffer through a lack of tax incentives compared to Employee Ownership Trusts. Housing co-operatives remain an underutilised solution to the housing crisis. Addressing these gaps through targeted policies, investment, and cross-sector collaboration will be key.

To unlock the full potential of the co-operative economy we’re working with partners and government to optimise key enablers of growth, including:

• Co-operative development – providing support for new and existing co-operatives.
• Finance and capital raising – expanding investment opportunities for co-operative enterprises.
• Rules of the game – advocating for legislative reforms to level the playing field.
• Education and training – equipping people with the knowledge to establish and run co-operatives successfully.
• Tech and digital innovation – enabling co-operatives to compete and innovate in a digital economy.

A place-based approach will also be critical, recognising that the opportunities and challenges vary across regions. 

Co-operatives and mutuals can be drivers of sustainable growth. By fostering the right conditions, investing in key sectors, and championing policy reforms, the UK can realise the full potential of co-operatives and mutuals, delivering economic prosperity and social benefits for millions.

Discover more about the International Year of Co-operatives and how to get involved here:

This article was first published in Society Matters magazine