Potential new government proposals will require Co-operatives to have fewer auditors, potentially saving them up to £10,000 a year.
The government is looking into increasing the thresholds at which the mutually-owned businesses run by and for their members, operated for the benefit of the community, have to produce a full audit report.
New proposals will mean that co-operatives with a turnover of £10.2 million and assets of £5.1 million will not to appoint an auditor. Currently, the figures are a turnover of less than £5.6 million and assets of less than £2.8 million.
“From the dairy farm that provides milk to the local community, to the brewery owned by 10 friends who all have a passion for ale, we want to see co-operatives and community benefit societies across the UK thrive and grow,” said The Economic Secretary to the Treasury, Stephen Barclay.
“That’s why we’re reducing onerous administrative burdens on these societies, saving them money and freeing them up to concentrate on what matters the most – the needs of their members and communities.”
The changes made to the proposals will mean that 70 percent of co-operatives in the UK will no longer have to undertake a full audit.
There are currently 7,000 co-operatives in the UK. They contribute over £34.1 billion to the British economy. The largest co-operative is the Co-operative group which is the UK’s fifth biggest food retailer with over 2,500 stores.
Ed Mayo, Secretary General of Co-operatives UK, said: “We are pleased government has heeded calls to remove this unnecessary extra burden on co-operative and community businesses. This is a great example of the practical steps government can take to support the UK’s co-operative sector, which plays a key role in fostering a more inclusive economy.”
The consultation will close September 22.