The Co-op has issued a stark warning that Britain’s high streets could face devastating job losses unless the Government undertakes urgent reform of business rates. According to new research commissioned by the retailer, as many as 60,000 small shops and 150,000 jobs could vanish if decisive action is not taken soon.

The campaign, titled On Your Corner, In Your Corner, urges policymakers to “finish the job” by offering maximum support to protect small businesses and the communities they serve. Co-op argues that current business rates are unsustainable for many independent retailers already grappling with rising costs and reduced consumer spending.

Businesses under pressure

The Co-op’s latest study paints a bleak picture of high street survival. Among small shop owners in England, 77% believe reform is essential to stay afloat. One in ten say they will have to lay off staff if nothing changes, while one in eight warn they may have to close completely.

The survey also revealed that two-thirds of business owners believe their local high street is “dying”, and nearly eight in ten say conditions have worsened over the past five years. Confidence is particularly low within the hospitality sector, which continues to battle higher National Insurance costs and shrinking margins.

The community connection

Beyond the economic toll, the Co-op highlights the vital social role that local shops play. A YouGov poll commissioned by the retailer found that 56% of UK adults view local shops as important to their wellbeing, while 74% believe their community would “lose part of its identity” without them.

Shirine Khoury-Haq, Co-op Group CEO, emphasised the urgency of reform ahead of the Autumn Budget, warning that small businesses risk being overlooked. “Local shops aren’t just businesses; they’re part of the social fabric of Britain,” she said.

Hopes pinned on the Autumn Budget

With the Government preparing its November Budget, many small business owners are anxiously awaiting signs of relief. While discussions around the Employment Rights Bill and zero-hours contracts continue, business rates remain the most pressing concern.

The Co-op is calling for maximum relief to safeguard high streets and prevent further closures. Yet its research shows that seven in ten people doubt the Government will deliver meaningful change, suggesting optimism among SMEs is rapidly fading.