Working fingers to the bone: Can the UK save its struggling high streets?
A family business under pressure
Taking over a family business can bring pride, but also heavy demands. Suri’s family now has one shop on Kings Heath High Street, and he is considering moving after the current location brought higher operating costs.
The business has a loyal customer base, but Suri says it is becoming harder to earn a living. Rent, VAT, wages, pensions, energy and specialist materials all cut into revenue; a printer ink refill costs him about 2,000 pounds ($2,664).
Asked about his income, Suri said he pays himself less than the minimum wage of 12.21 pounds ($16.26) per hour. “When I say that I live month to month, I literally mean that,” he said.
Online prices and changing habits
Kings Heath High Street faces pressures felt across Britain, as major businesses, taxes and online shopping challenge independent retailers. Suri says customers value his shop’s quality but also expect prices comparable to online sellers, which he cannot match.
He says household living costs make it difficult for customers to support local businesses all the time. Some shoppers describe the high street as less appealing, with online shopping offering greater convenience and visits sometimes lacking inspiration.
Calls for stronger action
At a parliamentary inquiry earlier this month, Andrew Goodacre, chief executive of the British Independent Retailers Association, said recent business rate reforms had not delivered their intended benefits for smaller retailers. Goodacre told MPs that some independent shops faced higher bills while a large supermarket near his home was set to pay substantially less. The evidence raised concerns that tax reform needs enforcement, and that a rates cut alone will not halt the high street’s decline.
An uncertain year ahead
Small business owners may receive some tax relief in Wednesday’s budget, but retailers say it will not be sufficient by itself. One assessment described the changes as a small step in the right direction, while calling for broader measures to help high streets thrive.
Key points
- Suri is considering moving his family’s shop from Kings Heath High Street because of rising costs.
- He says printer ink costs about 2,000 pounds ($2,664) to refill.
- Retailers say online competition and household expenses make it harder to sustain local shops.
- Andrew Goodacre says business rate reforms have not delivered intended benefits for smaller retailers.