Co-op has highlighted new research which claims that 60,000 small shops and around 150,000 jobs could disappear without the reform of business rates.

The findings, based on a YouGov survey and data from Opinion Matters, found that 60 per cent of UK adults lack confidence that the government will deliver on its promise of relief for small businesses, despite repeated pledges in previous budgets.

According to the figures, if reforms are not delivered in the upcoming Autumn Budget, around 10 per cent of small High Street business owners say they would need to lay off staff, while one in eight say they would be at risk of closure.
Co-op said this would cause “tens of thousands” of closures nationwide, with significant economic and employment consequences.

The research also found that 36 per cent of small businesses would freeze pay rises, while 26 per cent would halt hiring.

The government’s current proposal 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 it swiftly to give small shops certainty.

The YouGov research indicates that around 77 per cent of small High Street shop owners say business rates reform is essential for survival, while nearly half said they would struggle to grow without protections.

It also shows that around half of UK adults, some 30 million people, see local shops as important to their wellbeing.

Without them, 74 per cent said they would “feel their community would lose part of its identity”.

Co-op said that the results of its own Big Survey study shows that its members want thriving local shops, safer High Streets and stronger communities.

Some 67 per cent of those who took part in the survey said they believe their High Street is dying, while 78 per cent say it’s worse than five years ago.

Co-op claims these results show that its members are calling for more independent shops and community spaces and that protecting local retail is about identity and belonging, not just economics.

Shirine Khoury-Haq, Co-op Group chief executive, said that the research shows a clear public mandate for action and that the majority of people want the government to do more to protect their High Streets.
“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,” she added. “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.”

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