A worrying 37% of high street store owners are planning to close or sell their business in 2025 due to rising costs and a drop in consumer spending, a new study has found.
Business insurance provider Simply Business has revealed the challenges facing Britain’s high streets and the support needed to ensure survival in its latest SME Insights Report.
Survey responses from 2,300 SMEs found three quarters (74%) reported a decline in foot traffic, with over half (63%) believing that high streets would be obsolete in the next decade.
When asked what would help keep their businesses alive, a third (34%) said lower overheads and almost half (45%) would need an increase in customers.
On government support, a reduction in business rates would be key to a nearly a quarter of small businesses (24%). Almost a third (27%) want the government to encourage or incentivise people to shop with local small businesses, while 16% would like to see an increase in tax for big online retailers and national chains.
Factors that would evolve high streets and boost foot traffic include more independent businesses and fewer chain stores, free or low-cost parking and a wider variety of activities, according to SMEs.
Mark Maciver, owner of barber shop Slider Cuts, said rising costs have affected his business: “Particularly energy costs as one month we were paying £250, the next it was £1,300, then £1,200. It was all over the place. When you have a business where you’re not making that much profits, when things go up, it can make things a lot tighter.
“One way the government could help me, and other small businesses right now would be easier access to funding”.
Julie Fisher, chief executive of Simply Business, commented on the report: “Seeing so many SMEs across the UK struggling is a serious cause for concern, not just for the founders of these businesses but for the British economy and our wider communities. SMEs provide over £2.8 trillion in annual turnover, and account for over half (60 per cent) of private sector employment. Our high street businesses play a key part in these figures.
“From reduced business rates to initiatives that increase footfall, we encourage the government to acknowledge the fears of Britain’s inspiring entrepreneurs and hear their calls for support.”
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