Warning that 60,000 small shops and 150,000 jobs at risk without ‘urgent’ business rates relief

The government has been warned that 60,000 small retailers and 150,000 jobs could disappear without “urgent” business rates reform being announced in the Autumn Budget on 26 November.

According to research by Opinion Matters, if changes are not made, 10% of small high street business owners say they would need to lay off staff, and one in eight fear they would be at risk of closure. 

Separate data from YouGov shows seven in 10 UK adults aren’t confident that the government will deliver on its promise of business rates relief for small businesses, while 50% see local shops as important to their wellbeing, and 74% say they “feel their community would lose part of its identity” with them.

The findings has been released by Co-op in the lead-up to the government’s Autumn Budget on 26 November.

The chancellor’s current pledge is to provide permanent business rates relief for small retail properties, replacing temporary pandemic measures. Co-op has urged the government to “commit to the maximum levels of relief in the Autumn Budget and to implement swiftly to give small shops certainty”.

Insights from the retailer show 67% of people believe their local high street is dying, 78% say it’s worse than five years ago, and 83% see it as vital to community wellbeing.

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.”