Regulators Announce New Plan to Boost Growth in Mutuals and Co-operatives Sector
The Financial Conduct Authority (FCA) and the Bank of England, alongside city minister Lucy Rigby, will meet in Rochdale on Friday 5 December 2025 to announce a comprehensive plan aimed at bolstering growth in the mutuals and co-operatives sector.
The sector, which comprises approximately £223 billion in assets, about 30 million members in financial mutuals, and 8,400 co-operative and community benefit societies across the UK, will benefit from a package designed to streamline applications for new mutuals and co-operatives and provide personalised pre-application support.
This initiative follows a year-long review revealing challenges faced by some mutuals in scaling operations, investing in technology, and competing with private firms. Labour's manifesto has pledged to double the size of this sector.
A significant element of the announcement includes discussions around mergers and acquisitions among mutual building societies, a trend growing in prominence with recent mergers such as Nationwide's acquisition of Virgin Money and Coventry Building Society's purchase of the Co-operative Bank. Laura Wallis of the Bank of England noted that while regulators remain agnostic regarding the sector's structure, they support mergers and transfers of engagements where desired, as they can help mutuals gain scale.
The plan also features the creation of a mutual societies development unit tasked with offering expert advice and support to the sector.
This initiative is set within a broader policy context including the Department for Business and Trade's consultation aimed at supporting non-financial mutuals and promoting transitions to co-operative ownership models.
The announcement will take place in Rochdale, known as the birthplace of the UK co-operative movement.
