Britain’s high streets are at risk of losing up to 60,000 small shops and 150,000 jobs unless the government takes urgent action to reform the business rates system, the Co-op has warned ahead of the Autumn Budget.
New research commissioned by the Co-op and conducted by YouGov reveals deep public scepticism over the government’s willingness to deliver meaningful relief, with nearly seven in ten Britons (69%) expressing doubt that promised reforms will ever materialise.
Calling on ministers to “finish the job” and protect small retailers, Co-op Group chief executive Shirine Khoury-Haq said local shops are more than just businesses — they are an essential part of social life in communities across the country.
“Local shops aren’t just businesses; they’re part of the social fabric of Britain,” Khoury-Haq said. “For some people, a visit to a local store is one of the few chances they have to chat to someone and feel connected.”
According to the Co-op’s report, 77% of small business owners believe that rates reform is essential for survival. Without changes, one in ten said they would have to lay off workers, while one in eight warned their businesses could close altogether.
The data also highlights the human and social cost of continued inaction. More than half of UK adults (56%) said their local shops are important to their wellbeing, and nearly three-quarters (74%) said their communities would lose part of their identity without them.
The findings underpin the Co-op’s new campaign, “On Your Corner, In Your Corner”, which urges the government to prioritise small retailers in its economic agenda. “To boost local economies, create jobs and strengthen communities, we need inclusive growth — and that means giving high street independents the relief they need to thrive,” Khoury-Haq said.
Industry leaders have echoed the call. James Lowman, chief executive of the Association of Convenience Stores, warned that the sector faces “significant further increases” in bills. “In the last year alone, business rates bills for convenience stores have risen by over £100 million,” he said. “It’s essential that the Budget includes a meaningful, long-term reduction in rates to incentivise investment.”
Small shop owners say years of “broken promises” have left them struggling. Benedict Selvaratam, who runs Freshfields Market in Croydon, said: “Without reform, we’ll see more closures and less investment in our towns. The government must ensure online giants pay their fair share.”
For shopkeepers like Jack Matthews of Bradley’s Supermarket in rural Leicestershire, the stakes are personal: “For many elderly people, we’re the only conversation they have in a day. Losing these stores would have a huge impact.”
Khoury-Haq said the message from communities is clear: “This is an opportunity for the government to prove it will do what it takes to make a difference. The future of Britain’s high streets depends on it.”
