The Co-op has warned that Britain’s high streets face “a critical moment”, highlighting new research that shows 60,000 small shops and 150,000 jobs in England could disappear without urgent business rates reform.
One in eight small high street business owners in England said they would be at risk of closure without business rates reform, while 19% of small retail businesses said they would either be forced to cut staff or risk closure without business rates reform, according to recent survey data from Opinion Matters.
The findings, released ahead of the Autumn Budget, showed that around seven in 10 UK adults (69%) lack confidence that the Government will deliver on its promise of relief for small businesses [in England] – despite repeated pledges in previous budgets.
YouGov research also reveals that over half of UK adults (56%) – equivalent to over 30 million people – see local shops as important to their wellbeing. Without them, three in four people (74%) say they “feel their community would lose part of its identity”.
Meanwhile, insight from Co-op’s Big Survey showed 67% believe their high street is dying, 78% say it’s worse than five years ago, and 83% see it as vital to community wellbeing. Members are calling for more independent shops and community spaces—proof that protecting local retail is about identity and belonging, not just economics.
Shirine Khoury-Haq, Co-op Group CEO, said:
“As we approach a critical Autumn Budget, there’s a real danger that the voices of small shops – and the communities they serve – are not being heard. Local shops aren’t just businesses; they’re part of the social fabric of Britain. For some, a visit to a local store is one of the few chances they have to chat to someone and feel connected.
“This research shows a clear public mandate for action. Regardless of how they vote, the majority of people want the Government to do more to protect their high streets. This is an opportunity for the government to really prove to people that they will do what it takes to make a difference to people’s communities and to their wellbeing.
“The proposed system would improve the financial situation of 99% of retailers. How much they are protected from tax rises depends on decisions made in this Budget. To boost local economies, create jobs and provide community cohesion, we need inclusive growth. That means supporting the businesses on the corners, in the precincts, on the parades and the high streets of every community. In order for them to not only survive, but to thrive, the Government has to commit to the maximum levels of relief.”
Association of Convenience Stores chief executive James Lowman said:
“In the last year alone, business rates bills for convenience stores have increased by over £100m. These essential local shops are now facing significant further increases with the expected reduction of the 40% Retail and Hospitality Relief, coupled with next April’s revaluation, unless the Government commits to the full use of new powers to introduce a permanently lower multiplier for local shops.
“We’ve been calling on retailers throughout the summer to write to their MPs on the impact that business rates increases are having on their investment plans and have engaged directly with the Treasury to outline the difficult decisions that retailers are already having to make as a result of higher bills. It’s essential that the Budget includes a meaningful long term reduction in rates bills for convenience stores to incentivise investment and provide much needed certainty for the future.”
Benedict Selvaratam, owner of Freshfields Market in Croydon, Surrey, said:
“The high street still matters. It’s where people meet, work, and live. Without rates relief and reform, we’ll see more closures, more risk-averse owners, and less investment in our towns. We were expecting government to follow through on their manifesto commitments, to look at redistribution, to ensure online giants pay their fair share, and to support bricks-and-mortar businesses.”
Jack Matthews, owner of Bradley’s Supermarket in Quorn, Leicestershire, said:
“We’ve always played an important role in the community. For many elderly people, sometimes we’re the only conversation they have in a day, and we’re proud to play that role. We need the government to deliver rate relief in the autumn budget. Losing a convenience store in a rural community could have a huge impact – and those are the stores that need government support the most.”
