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<p>The Government is committed to having a thriving co-operative sector and creating
a modern and supportive business environment in the UK. The Government acknowledges
the vital contribution co-operatives make to the economy, serving local communities
up and down the UK. The latest Co-operative and Mutual Economy Report 2023, conducted
by the trade body Co-operatives UK, found that co-operatives generated a combined,
annual turnover of £40.9 billion, a 3.7% increase from 2022 levels.</p><p> </p><p>The
Government has taken significant steps to support the co-operative sector in recent
years. For example, the Co-operative and Community Benefit Societies Act 2014 helped
cut through the legal complexity involved in running a co-operative, improving their
competitiveness. Additionally, at Budget 2021, the Government announced the £150m
Community Ownership Fund. This allows community groups to bid for up to £2 million
matched-funding to help them buy or take over local community assets at risk of being
lost and run them as community-owned businesses, supporting co-operative entrepreneurship.
To date, 195 projects across the UK have benefitted from the fund.</p><p> </p><p>Earlier
this year, the Government-supported Co-operatives, Mutuals, and Friendly Societies
Act 2023 came into force, which grants HM Treasury the power to bring forward regulations
to give those mutuals further flexibility in determining for themselves the best strategies
for their business regarding their surplus capital.</p><p> </p><p>Furthermore, the
Government also aims to continue to develop a modern and supportive business environment
to set co-operatives and mutuals up for success. The Government has commissioned the
Law Commission to conduct reviews of the Co-operative and Community Benefit Societies
Act 2014 and the Friendly Societies Act 1992. These reviews will investigate necessary
changes to legislation that will help support co-operatives and friendly societies
in their future growth and success.</p>
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