The Manchester-based Co-op has warned that the UK’s high streets “face a critical moment” as new research revealed that 60,000 small shops and 150,000 jobs could disappear without urgent business rates reform.

The findings, released ahead of the UK’s Autumn Budget, show that 69% lack confidence that the UK Government will deliver on its promise of relief for small businesses, despite pledges in previous budgets.

The Government’s current proposal is to provide permanent business rates relief for small retail properties, replacing temporary pandemic measures. The 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.

The Co-op employs 54,000 people and generates annual revenues of over £11 billion.

“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,” said the Co-op.

“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.”

Co-op Group CEO Shirine Khoury-Haq 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.”