The Ownership Commission, which was set up under the last government to examine corporate ownership in the UK, has published its report today.
The report says that government should ensure that all types of business, from PLCs to family, co-operative and employee-owned firms, are able to play their part in creating wealth and a strong economy.
• Greater plurality in corporate ownership
• Better stewardship of companies
• Greater engagement of employees and shareholders
Speaking before the report was published, the commission's chair, Will Hutton said: "The financial crisis and the protracted problems in its wake has opened up the debate about how well our economy is owned, run and managed. Good ownership is indissolubly linked to good capitalism. The golden thread running through all our proposals is that the route to good ownership is better to connect citizens either through the institutions that invest on their behalf or as individual shareholders or as consumers and workers with their companies.
"The heart of good ownership is engagement and stewardship expressed through as many ownership forms as possible. Britain will have a better performing and more resilient economy the more seriously it can develop better ownership – as important for the public as the private sector. We offer this report as our contribution to a vital national debate."
Writing in the Financial Times Mr Hutton said: "The other side of the coin is that Britain's co-operative and employee mutual sectors are too small and undernourished; both represent less than 2% of gross domestic product. They should be larger and given a better chance to show their worth."
Reaction to the Commission's findings
The Co-operative Group chief executive Peter Marks, who was a member of the commission, said: "The financial crisis has shown us how important it is that the businesses we rely on for growth, employment and wealth generation are well managed. We have also seen how differently owned firms responded to the risks and challenges of the economic turmoil. This report shows how we can learn from this and ensure that UK business is better placed to build a prosperous future."
Ed Mayo, chief executive of Co-operatives UK, said: "Co-operatives UK welcomes the publication of the Ownership Commission's report, which provides a welcome breath of fresh air in discussions about business ownership in the UK.
"We are pleased to see recommendations relating to increasing the diversity of ownership models and particularly pleased to see that attention is paid to co-operatives and mutuals as offering a responsible model of business ownership.
"The report rightly points out that the regulatory and financial focus on PLCs in the UK overlooks the important contribution different models make to the economy.
"Our research supports this, showing that there are three times more members of co-operatives than individual shareholders, and in the UK, around 15% of the population has direct ownership of shares, compared with 21% who are owners or members of a co-operative.
"Co-operative businesses are continuing to outperform the UK economy, having grown by 21% since the start of the credit crunch.
"There is clear evidence to support the Ownership Commission's recommendations that the diversity of the economy needs to be recognised and strengthened."
To visit the commission's site and read the report, click here
Let us know your views on the report by commenting below or emailing David Mills
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