Government publishes draft legislation on reforms for growing co-ops #coops

This was originally published by Co-ops UK:

Draft legislation for growing co-ops

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The government has today published draft legislation that removes a key financial burden for some growing co-ops, helping to put them on a level playing field with other business forms.

The reform, which we have been lobbying for over the last year, raises the threshold at which co-operative and community benefit societies are forced to conduct a full professional audit to a level equivalent to companies. The threshold moves from £5.6 million in turnover and £2.8 million in assets, to £10.2 million in turnover and £5.1 million in assets.

We estimate the measure will save societies affected between £5,000 and £10,000 a year in extra audit fees.

The draft legislation is now open for consultation. We have developed a template response which you, as a member of Co-operatives UK, are welcome to use to give your views on the proposed legislation.

Responses must be sent to retailbankingandmutuals@hmtreasury.gsi.gov.uk by 22 September 2017. Please don’t forget to copy us in at policy@uk.coop

Read the full article here:

https://www.uk.coop/newsroom/government-publishes-draft-legislation-reforms-growing-co-ops

You can download the template from here:

https://www.uk.coop/sites/default/files/uploads/audit_si_response.docx

“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.”

Ed Mayo, Secretary General of Co-operatives UK

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