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The Co-op has warned s mall shops could face closure without business rates reform. The Co-operative is urging the Labour Party government to commit to the maximum levels of relief for smaller stores in the upcoming Autumn Budget on November 24. The Co-op has warned that up to 60,000 small shops across the UK could face closure without upcoming business rates reform for small shops. Shirine Khoury-Haq, Co-op group chief executive, said: "The proposed system would improve the financial situation of 99% of retailers. "How much they are protected from tax rises depends on decisions made in this Budget. To boost local economies, create jobs and provide community cohesion, we need inclusive growth." READ MORE £65,000 warning for thousands of women with babies under age five "That means supporting the businesses on the corners, in the precincts, on the parades and the high streets of every community. " In order for them to not only survive, but to thrive, the government has to commit to the maximum levels of relief.” In August, a letter signed by Morrisons , Aldi and JD Sports, warned that further tax rises on businesses could result in the Labour government breaking its manifesto pledge to provide “high living standards”. It reads: "As retailers, we have done everything we can to shield our customers from the worst inflationary pressures but as they persist, it is becoming more and more challenging for us to absorb the cost pressures we face.” A Treasury spokesperson said: “We are creating a fairer business rates system to protect the high street, support investment, and level the playing field by introducing permanently lower tax rates for retail, hospitality, and leisure properties from April that will be sustainably funded by a new, higher rate on less than 1% of the most valuable business properties. “Unlike the current relief for these properties, there will be no cash cap on the new lower tax rates, and we have set out our long-term plans to address ‘cliff edges’ in the system to support small businesses to expand.”
