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Nearly two-thirds of SMEs believe the UK high street will be obsolete in ten years

Closed stores on empty street in London
Photo: iStock

Highlights

  • 37 per cent of high street businesses are planning to close or sell their business in 2025 as almost half (45%) say increased footfall could help keep their business open long term
  • Soaring costs (52%) and reduced consumer spending (29%) named top reasons for high street decline
  • Annual SME Insights Report from Simply Business reveals effects of economic uncertainty and increasing costs on Britain’s businesses

Nearly two-thirds (63%) of small business owners believe the high street as we know it will be obsolete in the next 10 years, according to a new report.


Surveying over 2,000 small businesses, the annual SME Insights Report by small business insurance provider Simply Business, unveils the challenges facing Britain’s high street, from falling footfall to high business rates, and the support needed to ensure its survival.

According to the new research a worrying 37 per cent of high street shop owners are planning to close or sell their business in 2025. The soaring costs of running a business (52%) and reduced consumer spending (29%) are two of the leading challenges causing this chain reaction.

When asked what could help keep their businesses open long term while a third (34%) stated lower overheads, while almost half (45%) said an increase in customers.

Though the issues that each business faces can vary, there are practical actions that would offer some relief to almost all.

“Rising costs have definitely affected our business. Particularly energy costs as one month we were paying £250, the next it was £1,300, then £1,200. It was all over the place. When you have a business where you’re not making that much profits, when things go up, it can make things a lot tighter,” Mark Maciver, owner of barber shop Slider Cuts, commented.

“One way the government could help me, and other small businesses, right now would be easier access to funding.”

When asked what the most important action the government could take to better support them, a quarter (24%) believe a reduction in business rates would be key while almost a third (27%) said the government should play an active role in encouraging or incentivising people to shop locally with small businesses. 16 per cent said they’d like to see an increase in tax for big online retailers and national chains.

But the high street might need to evolve from what we know if it is to truly thrive. Asking business owners what would make them more likely to visit their local high street, 61 per cent said more independent businesses and fewer chains, 58 per cent said free or cheap parking, and half (50%) said a wider variety of things to do.

“Seeing so many SMEs across the UK struggling is a serious cause for concern, not just for the founders of these businesses but for the British economy and our wider communities,” Julie Fisher, Simply Business UK chief executive, said.

“SMEs provide over £2.8 trillion in annual turnover, and account for over half (60%) of private sector employment. Our high street businesses play a key part in these figures.

“From reduced business rates to initiatives that increase footfall, we encourage the government to acknowledge the fears of Britain’s inspiring entrepreneurs and hear their calls for support.”