The Co-op has warned that Britain’s high streets face a tipping point, with new research revealing that 60,000 small shops and 150,000 jobs could vanish without urgent reform of the business rates system.
The warning comes ahead of the Autumn Budget and follows YouGov research commissioned by the Co-op showing that seven in ten Britons (69%) doubt the Government will deliver meaningful rates relief, despite repeated promises in recent years.
The retailer said the findings should act as a wake-up call to ministers, urging them to “finish the job” and deliver maximum levels of support for small businesses that form the backbone of local communities.
“Local shops aren’t just businesses; they’re part of the social fabric of Britain,” said Shirine Khoury-Haq, chief executive of the Co-op Group. “For some people, 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.”
The Co-op’s report paints a bleak picture of life for small high street retailers in England, finding that 77% of owners believe rates reform is essential for survival.
If no changes are introduced, one in ten small businesses said they would have to lay off staff, while one in eight warned they could close entirely — a wave of closures that could devastate towns and cities nationwide.
The data also underscores the social cost of inaction. Over half of UK adults (56%) — around 30 million people — said their local shops are important to their wellbeing, while three in four (74%) said their community would lose part of its identity without them.
The findings form the basis of the Co-op’s new campaign, “On Your Corner, In Your Corner”, which champions small businesses and calls on government to prioritise community retail in its economic policy.
“The proposed system would improve the financial position of 99% of retailers,” said Khoury-Haq. “To boost local economies, create jobs and strengthen communities, we need inclusive growth — and that means giving corner shops, precinct stores and high street independents the relief they need to thrive.”
Industry leaders have echoed the Co-op’s call for urgent intervention. James Lowman, chief executive of the Association of Convenience Stores, said the sector faced “significant further increases” in bills without government action.
“In the last year alone, business rates bills for convenience stores have increased by over £100 million,” he said. “Essential local shops are now facing another rise with the expected reduction in Retail and Hospitality Relief, coupled with next April’s revaluation.”
“It’s essential that the Budget includes a meaningful, long-term reduction in rates bills for convenience stores to incentivise investment and provide certainty for the future.”
Independent shopkeepers warn of closures and “broken promises”
Small business owners across the country have joined the call for change. Benedict Selvaratam, who runs Freshfields Market in Croydon, said many shopkeepers had expected ministers to follow through on manifesto commitments to redistribute the tax burden more fairly.
“Without rates relief and reform, we’ll see more closures, more risk-averse owners, and less investment in our towns,” he said. “We were expecting the government 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 small convenience stores play a vital role in rural life.
“For many elderly people, we’re the only conversation they have in a day,” he said. “Losing a convenience store in a rural community could have a huge impact — and those are the stores that need government support the most.”
The Co-op’s research also found widespread concern among its 6.9 million members, with 67% believing their high street is dying, 78% saying it’s worse than five years ago, and 83% viewing it as vital to community wellbeing.
Khoury-Haq said the message from the public could not be clearer: “This is an opportunity for the government to prove it will do what it takes to make a difference to people’s communities and to their wellbeing. The future of Britain’s high streets depends on it.”
Read more:
Co-op warns 60,000 small shops and 150,000 jobs at risk without urgent business rates relief