The Co-op is warning that 60,000 small shops and tens of thousands of jobs are at risk unless the Government delivers business rates reform in full at the Autumn Budget.
The research – part of Co-op’s On Your Corner, In Your Corner campaign – shows the scale of the challenge facing independent and convenience retailers.
It adds that 150,000 jobs at risk without urgent business rates relief.
The new research also reveals seven in ten Brits doubt that the Government will deliver on relief as the public urges action to protect high streets and communities.
If reforms aren’t delivered, 10% of small high street business owners say they would need to lay off staff, and one in eight say they would be at risk of closure. That equates to tens of thousands of closures nationwide, with significant economic and employment consequences.
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, nearly three quarters (74%) say they “feel their community would lose part of its identity.”
Insight from Co-op’s Big Survey shows 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 (left), 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.”
“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 (left,) added his voice, saying: “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.”
“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, concluded: “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.”
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