Co-op pledges £1bn to cut prices and support UK economy

Co-op has pledged one of its biggest waves of price cuts as part of a £1bn “Back Britain” plan following the autumn budget.

The society said it would channel £1bn into the UK economy over the next 12 months to support consumers, businesses and high streets through the cost of living crisis.

Investment will focus on lowering prices for members and non-members, while backing British sourcing, community-led retailing, and skills development.

The price cuts will be across 1,000 products in its 2,300 stores and online. It will be aimed at categories that support British farming, produce, protein and dairy, Co-op said.

It added that it would also continue to spend more than £700m a year with British farmers and agriculture suppliers, in a bid to maintain its 100% British fresh and frozen meat commitment across all own-brand lines, including when used as an ingredient. It will also retain its 100% British eggs and milk pledge and continue sourcing UK-grown produce such as potatoes and carrots year-round.

Co-op has urged the government to ensure UK farmers receive adequate support to allow them to play their role in feeding the nation and tackling climate and nature crises.

The society has also committed to spending over £580m with Goods Not for Resale businesses that are based and operate from the UK. Additionally, through its energy-buying arm Co-op Power, it will deliver more than £6.4m of energy procurement over the next 12 months, helping UK organisations cut costs and source low-carbon energy, it said.

Furthermore, the Co-op has set out to invest in another 100 stores over the next 12 months, including new openings, redevelopments, relocations and refits, to “ensure essential retail services remain at the heart of neighbourhoods nationwide”, it said. Co-op welcomed the government’s decision to deliver long-promised business rates reform, saying it will help protect small shops, local jobs and investment on high streets across the UK.

It has also committed to continuing its £38m annual spend on crime prevention measures, which has included body-worn cameras and security guards, to deter persistent offenders and protect colleagues.

Finally, Co-op has set a target of creating 7,000 matched apprenticeships by 2030 through its Levy Share service, which has already transferred £40m of unspent apprenticeship levy from larger employers to smaller businesses and community organisations since 2021.

Over the next 12 months, a further £6m is expected to be shared, which will contribute to a projected £70m total by 2030. It aims to help thousands more people access training and career opportunities and further boosting skills and social mobility across the UK.

“Today’s budget provides the clarity and certainty that small shops and local communities have been waiting for,” said Co-op Group CEO Shirine Khoury-Haq.

“The government’s decision on business rates is a welcome and important step that will help protect jobs, strengthen local economies and support high streets across the country.

“Co-op is stepping up alongside this commitment, facilitating over £1bn of spend into the UK economy over the next year. This includes our biggest ever number of price reductions to help with the cost of living, continued investment in British farmers and suppliers, and a focus on keeping high streets vibrant and safe.

“As a business owned by seven million members, not shareholders, we measure success in the value we create for people and places. Backing Britain reflects our belief that responsible business must play its part in the country’s recovery and future growth.”