Rachel Reeves warned 60k UK shops on the brink | Politics | News

Rachel Reeves has been warned that 60,000 small shops and 150,000 jobs are at risk unless business rates reform is introduced in her upcoming Budget. New research by Opinion Matters has found that one in eight small high street business owners say they face the risk of closure unless changes are made, and 10% say they will have to make staff redundant.

The Labor Government has promised to introduce permanently lower rates for small businesses. The temporary 40% discount for eligible retail, hospitality and leisure businesses in England, compared to the previous 75% discount, is expected to end next April.

James Lowman, chief executive of the Convenience Stores Association, said: “Last year alone, grocery business rates bills rose by more than £100 million.

“These essential local shops will now face significant increases, with an expected 40% reduction in retail and hospitality discounts, with the revaluation due next April, unless the Government commits to making full use of the new powers to impose a permanently lower multiplier for local shops.

“Over the summer we called on retailers to write to MPs about the impact of business rates rises on investment plans and spoke directly to the Treasury to outline the difficult decisions retailers are already having to make as a result of higher bills.

“It is crucial that the budget includes a meaningful long-term reduction in grocery bills to encourage investment and provide much-needed certainty for the future.”

A separate YouGov poll found three in four people said they “felt their community would lose some of its identity” without local shops.

Co-op group CEO Shirine Khoury-Haq added: “As we approach a critical Autumn Budget, there is a real danger that the voices of small shops and the communities they serve will not be heard.

“Local shops are not just a business; they are part of the social fabric of Britain. For some, visiting a local shop is one of the few opportunities they have to chat and connect with someone.

“This research shows a clear public mandate to take action. Regardless of how they voted, 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 whatever it takes to make a difference in their communities and their well-being.

“The proposed system will improve the financial situation of 99 percent of retailers. How much they will be protected from tax increases depends on the decisions to be taken in this budget.”

“We need inclusive growth to stimulate local economies, create jobs and ensure community cohesion.

“This means supporting businesses on the corners, in the neighbourhoods, in the parades and on the main streets of every community. To ensure they not only survive, but can thrive, the Government needs to commit to the maximum level of assistance.”

The Conservatives promised at their party conference earlier this month they would abolish business rates for high street shops and pubs if they won the next general election.

A Treasury spokesman said: “We are creating a fairer business rates system to protect the high street, support investment and level the playing field by introducing permanently lower tax rates for retail, hospitality and leisure properties from April, which will be sustainably funded by a new, higher rate on less than 1% of the most valuable commercial properties.

“Unlike the current relief for these properties, there will be no cash cap on the new lower tax rates and we have outlined our long-term plans to address ‘cliff edges’ in the system to support small business expansion.”