Spotlight on Labour government support for co-ops, mutual and social enterprise

Not enough publicity has been given to the government�s support for co-ops, mutuals and social enterprises, David Lepper, Labour and Co-operative MP for Brighton Pavilion, told the Sussex Co-operative Party recently.

In his annual report to the Co-operative Party’s annual general meeting at the Ropetackle Centre, Shoreham by Sea, David Lepper said:

“Although they have not grabbed the headlines work by a number of government departments is providing more support for the sector.

 “As well as ongoing backing for Supporters Direct and the vital work which the Department for International Development is doing with the Co-operative College, initiatives in the last year included:

• An extra £6 million last July from the Financial Inclusion Fund for credit unions made available through the DWP’s Growth Fund to support their lending in parts of the country where supply is insufficient.  And the initiative to encourage credit unions to participate in the Child Trust Fund scheme.

• Enterprise Week sponsored by the Department for Business, Enterprise and Regulatory Reform, including Social Enterprise Day.

• The launch by third sector Minister and Co-op MP Phil Hope of funding for smaller co-operatives and co-operative consortia to enable them to promote their work as part of the Office of the Third Sector’s Strategic Partners’ Programme. which aims to ensure the third sector can communicate successfully with government.

• Gordon Brown’s announcement of a £10 million capital risk fund for social enterprises and £27 million for social enterprise in health and social care.

• The Department of Health’s work with the Social Enterprise Coalition on the Innovation for Life Challenge Fund, which will allow strategic health authorities to bid for up £100,000 to commission social enterprises for some services. Health Minister Ivan Lewis said: “We hope this will challenge commissioners to find solutions through social enterprises to long-standing problems that have the potential to lead to social change and improvement in health and wellbeing.”

David Lepper added:

 “ Perhaps most important for the long -term is the review of co-operatives and credit union legislation begun in June 2007 by the then Economic Secretary to the Treasury and Co-op MP, Ed Balls.

“The Tories have claimed this year that they are interested in the co-operative ideal but it is a Labour government backed by the 29-strong group of Co-op MPs which is helping to put that ideal into practice.”