London-Following the Chancellor’s Autumn Budget, the Co-op Group has announced a major £1 billion investment into the UK economy over the next 12 months, aimed at supporting consumers, businesses and local high streets across Britain. The move comes as households continue to face pressure from the cost-of-living crisis, despite early signs of wider economic recovery. The announcement is being seen as a strong vote of confidence in Britain’s economic direction at a time when families and small businesses need support the most.
The UK’s largest consumer co-operative said its “Backing Britain” plan will focus on lowering prices for customers and members, supporting British farmers and suppliers, strengthening community-focused retail and investing in skills development. The initiative also reflects Co-op’s unique ownership model, being owned by seven million members rather than shareholders, which allows it to prioritise people and communities over profits.
As part of the plan, Co-op will introduce one of the biggest price reduction programmes in its history. Over the next year, the retailer will cut the cost of more than 1,000 everyday products across its 2,300 stores and online platforms. The reductions will be focused on essential categories including British produce, protein and dairy, helping families manage rising food bills while continuing to support UK agriculture.
Co-op has also warmly welcomed the Autumn Budget’s long-promised business rates reform, which it says will give small, local retailers greater confidence to invest in their communities. The reform is expected to ease pressure on independent shops and community businesses that have struggled under rising operating costs in recent years. Co-op said the government’s decision would help protect jobs, strengthen local economies and keep high streets vibrant and safe.
Shirine Khoury-Haq, Chief Executive of the Co-op Group, said the Budget has delivered long-awaited certainty for local businesses. She said the company is stepping up alongside the government’s commitment by facilitating more than £1 billion of spending into the UK economy over the next year. This includes record price reductions, continued investment in British farmers and suppliers, and a renewed focus on community safety and high street regeneration.
New research from Co-op’s latest membership survey highlights why the initiative is urgently needed. According to the findings, 58 per cent of members now rank the cost of living among their top three concerns, up from 51 per cent in late 2024. The concern is even more severe among young adults, with 72 per cent of those aged 18 to 34 saying the cost of living is one of their biggest worries. Co-op said these realities sit at the heart of its “Backing Britain” strategy.
Political figures, including Labour MP Preet Kaur Gill, have consistently raised concerns in Parliament about the pressure on working families, food costs and the survival of high streets. The Co-op’s announcement is expected to contribute positively to national efforts to protect vulnerable households, support British producers and stabilise local economies during a challenging period.
With its strong emphasis on affordability, British sourcing and community investment, Co-op’s £1 billion plan is being viewed as a significant private-sector contribution to Britain’s economic recovery. As inflation continues to impact household budgets, initiatives that directly lower prices while supporting domestic industries are likely to play an important role in shaping the country’s financial resilience in the year ahead.