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.

If reforms are not delivered, 10% of small high street business owners across England 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.

Benedict Selvaratam, Owner of Freshfields Market, Croydon said:
“Business rates relief has been a lifeline, and the sudden jump has hit us hard. My own rates bill has pretty much tripled overnight. We’re not asking for a hand-out. We’re asking for a fair system that allows local shops to compete and to keep serving their communities. 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.”

For the On Your Corner, In Your Corner campaign, Co-op has commissioned YouGov to conduct two surveys into attitudes to high street shops in regions across England.

The research reveals that 4 in 5 people in London say that local shops are “vital to my community” (84%). Without them, they say they “feel their community would lose part of its identity” (77%).

The findings, released ahead of the Autumn Budget, also show around3 in 5 Londoners lack confidence that the Government will deliver on its promise of relief for small businesses – despite repeated pledges in previous budgets (59%).

Co-op’s 6.9 million members are also clear: they want thriving local shops, safer high streets and stronger communities. Co-op’s 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 London. 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.”

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.