Co-op Warns 60,000 Small Shops and 150,000 Jobs at Risk Without Urgent Business Rates Relief
13 October 2025
- New research from Co-op reveals 7 in 10 Brits doubt Government will deliver on relief as the public urges action to protect high streets and communities
- 77% of small high street shop owners in England say business rates reform is essential for survival
- Co-op calls for Government to finish the job and deliver maximum support to protect high streets and local communities
- Over half of people say local shops and businesses are vital to their community identity or wellbeing
- On Your Corner, In Your Corner: Co-op campaign champions small businesses nationwide
Britain’s high streets face a critical moment, the Co-op has warned, as new research reveals 60,000 small shops and 150,000 jobs* could disappear without urgent business rates reform.
The findings, released ahead of the Autumn Budget, show around 7 in 10 UK adults (69%) lack confidence that the Government will deliver on its promise of relief for small businesses - despite repeated pledges in previous budgets.
If reforms are not delivered, 10% of small high street business owners say they would need to lay off staff, and 1 in 8 say they would be at risk of closure. That equates to tens of thousands of closures nationwide, with significant economic and employment consequences.
YouGov research also reveals that over 1 in 2 UK adults (56%) – equivalent to over 30 million people – see local shops as important to their wellbeing. Without them, 3 in 4 people say they “feel their community would lose part of its identity” (74%).
Co-op’s 6.9 million members are clear: they want thriving local shops, safer high streets and stronger communities. The On Your Corner, In Your Corner campaign responds to this mandate. Insight from Co-op's Big Survey shows 67% believe their high street is dying, 78% say it’s worse than five years ago, and 83% see it as vital to community wellbeing. Members are calling for more independent shops and community spaces—proof that protecting local retail is about identity and belonging, not just economics.
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. 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.”
Association of Convenience Stores chief executive James Lowman said:
“In the last year alone, business rates bills for convenience stores have increased by over £100m. These essential local shops are now facing significant further increases with the expected reduction of the 40% Retail and Hospitality Relief, coupled with next April’s revaluation, unless the Government commits to the full use of new powers to introduce a permanently lower multiplier for local shops.
“We’ve been calling on retailers throughout the summer to write to their MPs on the impact that business rates increases are having on their investment plans and have engaged directly with the Treasury to outline the difficult decisions that retailers are already having to make as a result of higher bills. It’s essential that the Budget includes a meaningful long term reduction in rates bills for convenience stores to incentivise investment and provide much needed certainty for the future.”
Benedict Selvaratam, owner of Freshfields Market in Croydon, Surrey, said:
“The high street still matters. It’s where people meet, work, and live. Without rates relief and reform, we’ll see more closures, more risk-averse owners, and less investment in our towns. We were expecting government to follow through on their manifesto commitments, to look at redistribution, to ensure online giants pay their fair share, and to support bricks-and-mortar businesses.”
Jack Matthews, owner of Bradley’s Supermarket in Quorn, Leicestershire, said:
“We’ve always played an important role in the community. For many elderly people, sometimes we’re the only conversation they have in a day, and we’re proud to play that role. We need the government to deliver rate relief in the autumn budget. Losing a convenience store in a rural community could have a huge impact - and those are the stores that need government support the most.”
Economic and policy context:
- 77% of small high street shop owners say business rates reform is essential for survival.
- Nearly half (44%) would struggle to grow without protections; 36% would freeze pay rises; 26% would halt hiring.
- 77% back an online retail tax to level the playing field with online giants.
The Government’s current proposal is to provide permanent business rates relief for small retail properties, replacing temporary pandemic measures. Co-op is urging the Government to commit to the maximum levels of relief in the Autumn Budget and to implement swiftly to give small shops certainty.
The member‑owned retailer operates 2,300 Co-op shops across the UK and a wholesale network supporting 8,000 more, over 4,000 which are smaller independent retailers, placing it at the heart of thousands of neighbourhoods every day.
On Your Corner, In Your Corner is part of Co-op’s Social Value Strategy — a commitment led by 6.9 million members to stand firm on climate, opportunity and community. Since 2016, the Co-op Local Community Fund has shared £115 million with 39,000 community projects nationwide, supporting places where people can connect, access opportunities and thrive. Whilst, Making a Difference Locally (MADL) has raised over £18m for local charities and good causes through Co-op own-label product sales and in-store fundraising, ensuring funds stay within local communities.
ENDS
Notes to Editors
*60,000 businesses, 150,000 jobs: - Based on survey data from Opinion Matters, which found that: - 12.82 % of small high street business owners in England say they would be at risk of closure without business rates reform. - 18.92 % of small retail businesses said they would either be forced to cut staff or risk closure without business rates reform. There are approximately 482,810 small retail businesses in England (UK Statistics Authority data). - Applying 12.82% gives 61,896 businesses at risk of closure without rates reform. - Applying 18.92 % gives 91,348 businesses forced to cut staff or be at risk of closure. - For jobs, we estimated how many roles would be lost if these small businesses had to shed between 5% and 30% of staff (rounding up to the nearest whole number at each business). That equates to between 100,000 and 200,000 jobs at risk, of which 150,000 is the midpoint.
Sources - YouGov survey of 2,175 UK adults, nationally representative, 16–17 Sept 2025 - YouGov political survey 2,211 UK adults, 18–19 Sept 2025 - Opinion Matters survey of 300 UK Small Business Owners, aged 18+, 19–25 Sept 2025 - United Kingdom Statistics Authority: Business Population Estimates 2024 - All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2175 adults. - Fieldwork was undertaken between 16th - 17th September 2025. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).
About Co-op
Co-op Group is one of the world’s largest consumer co-operatives, operating across food retail, funerals, insurance, and legal services. Owned by over 6 million active member-owners, Co-op exists to meet their needs and champion the causes they care about. With more than 2,300 food stores, 800 funeral homes and a wholesale business supplying around 6,000 additional outlets, Co-op employs 54,000 colleagues and generates annual revenues of over £11 billion. It is a recognised leader in ethical business and community-led programmes, creating long-term value for members and communities across the UK.