---
title: "More UK High Street Shops Face Closure as Business Rates Set to Soar in 2025"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2025-01-03T10:46:41+00:00"
modified: "2025-01-03T10:46:41+00:00"
date: 2025-01-03
canonical: "https://stockmark.it/more-uk-high-street-shops-face-closure-as-business-rates-set-to-soar-in-2025/"
category: "Business"
categories: ["Business", "Retail", "UK Economy"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/1735901128625_xhPi7Cqy.jpg?fit=1024%2C576&quality=89&ssl=1"
format: "news"
language: "en-GB"
---

# More UK High Street Shops Face Closure as Business Rates Set to Soar in 2025

**Published:** January 3, 2025
**Author:** Stockmark.IT Website
**Categories:** Business, Retail, UK Economy
**Featured image:** ![Man looking at shop window, woman walking past on rainy high street. from Stockmark.it](https://i0.wp.com/stockmark.it/wp-content/uploads/1735901128625_xhPi7Cqy.jpg?fit=1024%2C576&quality=89&ssl=1)

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British retailers are bracing for what experts predict will be a record-breaking year of shop closures in 2025, driven by the imminent rise in business rates and persistent economic headwinds. Data from the Centre for Retail Research reveals that 13,479 shops ceased trading in 2024, marking a 28% increase from the previous year.

The retail sector witnessed several high-profile casualties in 2024, including Carpetright’s 273 stores, although 54 locations found salvation through Tapi Carpets & Floors. The Body Shop’s administration led to 82 high street closures, whilst Homebase’s collapse affected 130 shops, with approximately half subsequently acquired by The Range’s parent company.

Independent retailers, typically operating between one and five shops, bore the brunt of closures, accounting for 80% of all shuttered establishments. The Centre for Retail Research projects an alarming 17,349 store closures in 2025, surpassing the previous record of 17,145 set in 2022.

The Labour shadow chancellor Rachel Reeves’s October budget announcement to reduce business rates relief for retail, leisure and hospitality sectors from 75% to 40% has sparked concern. Altus Group calculates that typical shop business rates will more than double to £8,613 in the next tax year, up from £3,589.

Despite the gloomy outlook, some retailers continue to expand. The Co-op has announced plans to open 75 new convenience stores across Britain in 2025, demonstrating that opportunities still exist in specific market segments.

The challenging retail environment was further complicated by adverse weather conditions during the crucial Christmas trading period, with footfall dropping 11.4% compared to the previous year. Industry analysts attribute this decline to both economic uncertainty and meteorological factors, suggesting a continuing trend of cautious consumer spending.

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