Leaders of the Co-operative Movement are set to make radical changes to the organisation.

The 150-year-old movement is currently split into a worker-owned small business sector and the £10bn retail sector, which includes Co-op supermarkets and travel agents.

But delegates at a special congress in Manchester on Saturday are expected to vote in favour of merging the representative bodies of the two sectors, currently called the Co-operative Union and the Industrial Common Ownership Movement.

Co-op leaders hope the merger, which was recommended by the government-backed Co-operative Commission, will provide a stronger voice for co-operative and employee-owned businesses.

'Unique opportunity'

Pauline Green, Chief Executive of the Co-operative Union, said: "Special Congress is a unique opportunity for the Co-op to set a new agenda which effectively defines its role for the future.

"The co-operative way of doing business is a good one, combining people's needs with an equitable business model.

"We are re-stating the purpose of our movement and its relevance to society today.

"Co-operations all over Britain can look forward with renewed energy and vigour."

Other proposals likely to be agreed by delegates include a new branding strategy, increased social auditing and a Co-operative Foundation to fund community projects.