Co-op warns 150,000 jobs at risk ahead of Autumn Budget
The Co-op has warned that 150,000 jobs could disappear in the UK without urgent changes to business rates in the upcoming budget.
It said that 60,000 small shops were under threat and that despite the Labour government repeatedly pledging relief for small businesses, around seven in 10 UK adults lacked confidence that this relief would be delivered.
The Co-op said that if business rate reforms are not delivered, its research suggests that 10% of small high street business owners would need to lay off staff, and one in eight would be at risk of closure.
The member-owned group cited YouGov research revealing that more than half of UK adults consider local shops important to their well-being. Without local stores, 74% of people say they feel their community would lose part of its identity.
Co-op said its members are calling for more independent shops and community spaces to protect local identity, as its survey data shows most believe their high street is dying.
“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,” said Co-op Group CEO Shirine Khoury-Haq.
“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,” she said.
The government’s current proposal is to provide permanent business rates relief for small retail properties, which will replace temporary pandemic measures.
Co-op is pushing the government to commit to the maximum levels of relief to ensure the survival of British high streets and local retailers.
“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,” Khoury-Haq said.
“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.”
