Co-op warns 150,000 jobs at risk without business rates reform

The c-store specialist said that Britain’s high streets “face a critical moment” and that 60,000 small shops could disappear without urgent reform of business rates from the government.

Its claims are based on a new survey, which found that seven in 10 UK adults “lack confidence that the government will deliver on its promise of relief for small businesses – despite repeated pledges in previous budgets”.

Without business rates reform, 10% of small high street business owners say they will need to lay off staff, while one in eight say their business would be at risk of closure.

The Co-op survey also found that 67% of people believe their high street is dying, while 78% say it’s worse now than it was five years and 83% see their high street as being “vital to community wellbeing”.

Co-op members are calling for “more independent shops and community spaces – proof that protecting local retail is about identity and belonging, not just economics”.

Co-op group chief executive Shirine Khoury-Haq 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. 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.”