Mayor announces new Ownership Hub to support worker co-operatives and employee-owned businesses
The Mayor of London, Sadiq Khan, has today announced a ground-breaking new partnership with Co-operatives UK and the Employee Ownership Association (EOA) to support more London businesses to become employee or worker owned.
These organisations will now work with the Mayor to create a ‘London Ownership Hub’, building on Sadiq’s manifesto commitment to ensure London’s recovery from the pandemic results in ‘more of the prosperity created locally [being] captured within the local community’. To drive this forward, the Mayor has committed to supporting democratic businesses like co-operatives, mutuals, social enterprises, employee-owned, municipally-owned and community-owned businesses.
The Mayor’s team will work with Co-operatives UK and the EOA to develop the networks, resources and conditions to help worker co-operative and employee-owned businesses across London develop and thrive. The Hub will launch in early 2023.
There are more than 1,600 worker and employee-owned businesses in the UK, 30 per cent of which are in London. Despite this relatively low number, they contribute more than £40 billion to the UK economy, providing more than 200,000 jobs.
Employee and worker-owned businesses engage and empower workers to drive performance, while rooting sustainable, good jobs in local economies. This is particularly important as businesses face difficult economic times, soaring inflation and dwindling consumer spending power. Giving people a stake and a say in their workplace is also a fundamental factor in the Mayor’s Good Work Standard, an accreditation programme for employers modelling best practice in pay, well-being, diversity, recruitment, skills and progression.
Employee and worker ownership has also been found to strengthen the ability of businesses to weather difficult economic conditions. Research has shown that employee and worker-owned businesses bucked recent downturns, with improved staff retention and over half experiencing growth during the first year of the pandemic.1 Only 1.7 per cent of employee-owned and co-operative businesses ceased trading last year despite a tough 2021, compared to 7.5 per cent for all businesses.2
The Mayor of London, Sadiq Khan said: “London businesses have had to weather the perfect storm of Covid-19 and Brexit, followed by soaring inflation and falling consumer spending. In these uncertain times it is essential we don’t settle for business as usual and instead explore every opportunity to help businesses become more resilient and beneficial to local communities.
“Employee ownership creates dynamic, engaged workforces who feel a deep connection and shared purpose with where they work and who they work with.
“Increasing the number of employee and worker owned businesses is a key part of my mission to build a better London for everyone – a safer, fairer, greener and more prosperous city for all.”
Rose Marley, CEO at Co-operatives UK, said: “We’re delighted that the GLA has shown its commitment to creating a fairer, more inclusive economy. Business as usual doesn’t cut it: trashing nature, paying poverty wages and diverting the nation's wealth into tax havens, rather than reinvesting in our people and communities.
“This is an important step to breaking that mould. Worker co-ops are better at creating jobs, compared to businesses generally. We also know employee and worker-owned businesses are more resilient in an economic downturn. Creating more productive, engaging, empowering and democratic workplaces is better for everybody.”
James de le Vingne, CEO of Employee Ownership Association said: “The London Ownership Hub is a step forward for a prosperous, resilient, sustainable, and fairer economy in Greater London, and a sign of the important role employee and worker ownership has to play in economic development in the UK.
“Employee ownership hardwires fairness and inclusivity into our economy by providing employee owners a stake and a say in their workplace. It’s a highly impactful option for business considering succession or growth, and a practical solution in times of economic hardship. We are delighted to be working with the GLA to champion and grow employee and worker owned businesses across London.”
Notes to editors
1.
Employee-owned businesses demonstrate resilience and boost economy – Research from the University of St Andrew's demonstrates that resilience in the employee-owned sector. Over half of EOBs experienced either turnover growth or no turnover impact during the pandemic compared to 80% of other businesses reporting declining turnovers.
2.
Co-operatives for a stronger, fairer, greener, everyday economy: https://www.uk.coop/resources/co-operatives-stronger-fairer-greener-everyday-economy
The Ownership Hub is a joint venture from the Employee Ownership Association and Co-operatives UK that supports businesses, professional advisers and regions to grow employee and worker ownership, and promotes the associated economic and social benefits of these business models.
The Hub supports economic regions, offering them expertise and resource to grow employee and worker ownership. A growing network, the first regional Hub was launched in South Yorkshire in 2021.
Co-operatives UK represents the UK’s 7,000+ independent co-operative businesses. It empowers and supports co-operative enterprise with specialised knowledge and expertise, to grow the co-operative economy and create a fairer society. Through campaigning activities it lobbies policy makers and raises awareness of co-ops to the public. Co-operatives UK has more than 900 direct members and connects and offers services to over 4,000 organisations though its wider federal members.
Contact: Dom Mills, Marketing and Communcations Manager, Co-operatives UK, dominic,[email protected] | 07804152208
The Employee Ownership Association (EOA) is the heart of great employee ownership in the UK. A not for profit, politically independent organisation that represents and supports the development of the £30bn+ employee ownership sector, it campaigns to influence, inspire and support UK employee ownership to become more respected, more widespread and more successful. The EOA connects its 650+ corporate members with learning and support and works closely with them to champion the sector by sharing their stories, best practice and expertise.
Contact: Fran Lord, Head of Communications and Policy, Employee Ownership Association, [email protected] | 07939 905310