The Co-op has issued a dire warning to Government after research suggested nearly 62,000 small high street shops could shut and 150,000 jobs could be at risk without urgent business rates reform. It called on Labour to provide the maximum levels of relief to small shops in Rachel Reeves’ Autumn Budget.
However, the supermarket pointed to findings that 69% of UK adults lacked confidence that the Government would deliver on its promise of relief for small businesses, despite repeated pledges in previous budgets. The warning comes on the back of a survey from Opinion Matters, which revealed 12.8% of small business owners said they would be at risk of closure in England without business rates reform.
Co-Op warned it was equivalent to 61,896 businesses shutting their doors forever, with an estimated 482,810 small retail businesses in England. It also warned that the number of staff at risk could be higher than the survey suggests.
While 18.9% of businesses — equivalent to around 91,300 firms — reported they may need to cut staff or risk closure, Co-op estimated that between 100,000 and 200,000 jobs could be at risk if those businesses were forced to reduce their workforce by 5% to 30%.
The Government’s current proposal is to provide permanent business rates relief for small retail properties, replacing temporary pandemic measures.
Shirine Khoury-Haq, Co-op Group CEO, claimed the proposed system would improve the financial situation for “99% of retailers”.
She 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.”
“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.”
Ms Khoury-Haq added: “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 that in the last year alone, business rates bills for convenience stores have increased by over £100million.
He said: “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.”
Jack Matthews, owner of Bradley’s Supermarket in Quorn, Leicestershire, spoke about the importance of small retailers for 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,” 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.”
Responses from Co-op’s Big Survey showed that 67% believed their high street was dying, 78% said it was worse than five years ago, and 83% saw it as vital to community wellbeing. Members called for more independent shops and community spaces.