Firms are shouting for business rate reform amid fears that the UK high street could suffer thousands of closures.
UK high streets face a critical moment, Co-op has warned, stating that without reform business rates will continue to cripple businesses.
Citing new research, the supermarket giant is claiming that the UK could see 60,000 small shops and 150,000 jobs disappear if radical change doesn’t happen and fast.
The company has launched a campaign called On Your Corner, In Your Corner, a key message from which is for the Government “…to finish the job and deliver maximum support to protect high streets and local communities.”
Change essential for survival
The Co-op study reveals the extent of the issue with 77% of small high street shop owners in England. It says that business rates reform is paramount if they are to continue operating.
If reforms are not delivered, 10% of small high street business owners say they would need to lay off staff, and one in eight state that they would be at risk of closure.
While the report takes in a wide range of high street SMEs, the overriding message of pessimism about the future and fear is one that the hospitality industry has been reporting for many months.
The Co-op Big Survey revealed that 67% of those taking part believe their high street is dying and 78% say it’s worse than five years ago. With many of these businesses working in hospitality, it is unsurprising that this group has the lowest confidence of all sectors.
Our research in January recorded a 10% dip in confidence among hospitality business owners; and since, fears have been compounded by job losses in this sector as the NICs hike and rising costs bite.
Importance of local businesses
As well as gathering views from business owners, Co-op gauged views on the role local shops play within communities.
It quotes YouGov research that reveals that 56% of UK adults – more than 30 million people – see local shops “as important to their wellbeing”. Without them, 74% of those interviewed argued that “…their community would lose part of its identity”.
Shirine Khoury-Haq, 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.”
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.”
Waiting for the budget
The report confirms that many SMEs, and especially those in the hospitality sector, are awaiting the Autumn Budget with bated breath.
The Employment Rights Bill, and specifically changes to zero-hours contracts – are already in the headlines; but it is business rates that many businesses are hoping for some good news on. Co-op is calling for “maximum levels of relief” and argues that if high street businesses disappear, communities will too.
However, the Co-op report says that seven in 10 Brits “…doubt the Government will deliver on relief”. As the November Budget approaches, this figure suggests that pessimism is quickly turning to despair.
