Co-op has warned that 60,000 small shops and 150,000 jobs could disappear from Britain’s high streets without urgent business rates reform.

With the Government’s Autumn Statement just over six weeks away, the retailer has released research from more than 2,000 UK adults showing 69% of respondents lack confidence the Government will deliver on its promise of relief for small businesses – despite repeated pledges in previous budgets.

The Government’s current proposal is to provide permanent business rates relief for small retail properties, replacing temporary pandemic measures. Co-op is urging ministers to commit to the maximum levels of relief in the Autumn Budget to give small shops certainty.

“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.”

Shirine Khoury-Haq, CEO, Co-op Group

If reforms are not delivered, one in ten small high street business owners say they would need to lay off staff, and one in eight say they would be at risk of closure.

The research also reveals that over more than half of British adults (56%) – equivalent to over 30 million people – see local shops as important to their wellbeing. Without them, 74% say they “feel their community would lose part of its identity.”

“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,” added Khoury-Haq.

John Lowman, the Chief Executive of the Association of Convenience Stores 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.