High streets at a crossroads: The support small businesses need now

Many small businesses are struggling to keep the doors open in high streets across the country. Costs are up, footfall is down and online competition is relentless.

Here's a clear look at the pressures, the support already available and what more Enterprise Nation believes must be done, plus a recent win that shows change is possible.

The challenges small businesses are facing

Business rates and overheads

The business rates system is widely seen as outdated and unfair. Small bricks-and-mortar shops are paying disproportionately compared to online giants. Rising rents and overheads make survival even harder.

Nearly 70% of local firms report empty shops on their high street, with the Chancellor Rachel Reeves suggesting business rates reform could be in the next Budget to make it easier to invest.

We recently added our support to the government's interim report blueprint for reforming business rates.

Soaring costs, weaker demand

Costs have risen sharply – from energy to wages. Indeed, in a recent government paper, more than 80% of firms cited these pressures as a threat to their operations.

At the same time, customers are spending less in shops as the cost-of-living crisis bites. For independents, that means working harder for slimmer margins.

Restaurateur Stuart Langley runs the award-winning Seabird eatery in Ramsgate, where high-street vacancy rates are 10% above the national average.

Speaking at an event earlier this year, he said:

"You have to build your business customer to customer, meal to meal, drink to drink and bill to bill. Every single customer has to leave having eaten and drunk well, experienced a great space and great service and feel it was value for money."

Empty shops and low footfall

One in seven high street shops stood empty by the end of 2023, with over 9,000 outlets vanishing in the two years after COVID.

Some towns, like Ramsgate, have vacancy rates far above the national average. Each closed unit drags down footfall further, creating a spiral that hurts the remaining traders.

Becky Jones is the co-founder of Someday Studios, which works in partnership with Westminster Council and landlords to help reshape Oxford Street.

She describes the problem clearly:

"There's no shortage of demand for space. The difficulty is that there's no-one in the pipeline plugging the gap between start-ups and empty spaces.

"It's a very complex area for a new business to navigate between landlords, agents and local authorities, but there's no one demystifying this process. And until that happens, you won't see much progress."

Her words capture why Enterprise Nation, in research papers like Access to Space, has pressed for easier routes into vacant premises for start-ups and independents.

Competition from online and retail parks

Roughly 30% of retail sales are now online. While high streets are shifting toward experiences and services, independents struggle to match online platforms on price and convenience.

Crime and antisocial behaviour

Shop theft rose by more than 60% between December 2022 and December 2024, with staff facing growing abuse. These costs and risks weigh heavily on small business owners.

Government support: What's on offer for you

Across the UK, governments have schemes to ease pressures on high street firms. Here's what's available now:

Business rates relief

• England: Eligible shops, cafés, pubs and leisure venues can get 75% off their rates bill (capped at £110,000 per business). Local councils apply this automatically. From 2026, smaller high street properties will move to a permanently lower band.

• Scotland: The Small Business Bonus Scheme offers up to 100% relief for small premises.

• Wales: A tapered discount is available, and you can apply for the 40% Retail, Leisure and Hospitality Relief via your council.

• Northern Ireland: The Back in Business scheme gives a 50% discount for firms moving into long-vacant shops. You apply through the Department of Finance.

Funding for regeneration

• England: The Future High Streets Fund has allocated £830 million to 72 towns.

• Scotland: £62 million is being invested in town centres and derelict sites in 2025/2026.

• UK-wide: The UK Shared Prosperity Fund is still live, channelling money through councils and combined authorities.

  Local Investment Plans have backed projects ranging from high-street upgrades and digital tools for small firms, to mentoring and skills support. Businesses apply through their council or Local Enterprise Partnership.

High Street Rental Auctions (England)

• Since December 2024, councils can auction leases of shops left empty for over a year, giving entrepreneurs and community groups the chance to move in. So far, 11 local authorities have applied to take part in the auction initiative.

Support to adapt

• High Street Growth Incubators are being piloted to help start-ups move into empty premises. Simpler outdoor seating licences and new night-time economy zones aim to boost trade and dwell time.

• The government has also made permanent the Extended Pavement Licence Scheme, first introduced during the pandemic. Cafés, restaurants, salons and shops can now secure low-cost licences to use outdoor space for seating or displays.

  The aim is straightforward: make high streets livelier, increase dwell time and give customers more reasons to stay local.

What Enterprise Nation is calling for

The government has made progress, but it needs to do more – especially as it finalises its Small Business Plan. Here are our key asks:

• Help small firms access empty shops. Commission a national programme to prepare entrepreneurs for High Street Rental Auctions, offering training, mentoring and local community groups to connect businesses with vacant premises.

• Give councils more control over rates. Let local authorities shape business rates reliefs and exemptions for small firms, co-working spaces and charities, so support reflects local needs and helps revive struggling high streets.

• Discourage conversions from commercial to residential. Introduce a levy on landlords who shift properties from shops to housing purely for tax advantages, to protect space for small businesses and maintain balanced, mixed-use town centres.

A win to build on: Empty shop orders

One of our long-standing recommendations has now been adopted. In 2024, the government introduced Empty Shop Orders – now High Street Rental Auctions – giving councils power to bring long-vacant shops back into use.

Early examples show these auctions helping entrepreneurs and community ventures take on spaces that would otherwise stay shuttered. It's a win for small business – and proof that with the right policies, high streets can be revived.

Conclusion

High streets face real challenges, but the potential is huge. With targeted relief, practical routes into empty units and simpler rules that support trading, small businesses can make town centres thrive again.

Enterprise Nation will keep bringing business voices to government and keep pushing for the next round of wins that help independents stay at the heart of our communities.