A Cornwall town has warned “urgent action” is needed to combat the “ongoing and accelerating decline” of high streets across the UK – and says “staying silent is not an option”.
The government announced its new ‘High Streets Strategy’ last week, pledging to inject cash into areas hit hardest by shop closures in recent years.
But Mark Warren, manager of Newquay Business Improvement District (BID) in Cornwall has stressed that existing government policies place “unsustainable pressure” on businesses – and warned that high streets will “cease to exist” unless “urgent action is taken”.
Writing to Chancellor Rachel Reeves on Tuesday February 3, he said: “I feel deeply disappointed that policies intended to protect working people are instead placing unsustainable pressure on the very businesses that employ them.
“Employer National Insurance increases are forcing businesses to pause recruitment or reduce staff, which will inevitably drive unemployment in towns like mine. At the same time, taxes on hot food disproportionately impact small cafés and restaurants, while supermarkets remain largely insulated and can undercut town-centre traders on price.”
He added: “Independent businesses offering higher-quality products simply cannot pass these costs on to customers without losing trade.
“While increases to the National Minimum Wage are well-intentioned, I struggle to see how workers will benefit if the businesses they rely on for employment are no longer viable.
“This is compounded by rising energy costs, business rates, insurance, supply chain pressures and general cost-of-living increases that small business owners absorb daily.”
The letter goes on to stress that while short-term support has been directed towards the pub trade, “many other high street businesses have been overlooked entirely”.
It adds that the stated ambition of “vibrant, thriving high streets will not be realised if these pressures continue unchecked. High streets will simply cease to exist”.
He told Reeves: “Businesses are already on their knees, and many more closures will happen on your watch unless urgent action is taken.”
It comes as thousands of shops were forced to close across the UK last year, with both small businesses and chains like Poundland in Newquay shutting their doors.
The government has since pledged to inject £150million across the UK’s worst hit town centres, with more details set to be revealed in the coming months.
Communities Secretary Steve Reed said the move aims to “turn the tide” on high street decline.
Chancellor of the Exchequer Rachel Reeves, meanwhile, said of the plan: “If we’re going to restore the pride in our communities, we need our pubs and our high streets to thrive.
“We’re backing British pubs with additional support, and our new High Streets Strategy will help tackle the long-term challenges that our much-loved retail, leisure and hospitality businesses have faced.
“Thriving local businesses, bustling high streets and pride restored in our communities – that’s what this government is delivering.”
