Newquay business leader warns Chancellor of “unsustainable pressure” on high streets

Tuesday, 3 February 2026 15:43

The manager of a Newquay business organisation has written to the chancellor warning that government policies are placing “unsustainable pressure” on high street businesses.

Mark Warren, manager of Newquay BID, has sent a letter to Rachel Reeves raising concerns about what he describes as the “ongoing decline of our high streets”. In the letter, he said he felt “deeply disappointed that policies intended to protect working people are instead placing unsustainable pressure on the very businesses that employ them”.

He warned that rising costs were already forcing difficult decisions, saying employer National Insurance increases were “forcing businesses to pause recruitment or reduce staff, which will inevitably drive unemployment in towns like mine”. He added that taxes on hot food “disproportionately impact small cafés and restaurants”, while supermarkets remain “largely insulated and can undercut town-centre traders on price”, meaning independent businesses “simply cannot pass these costs on to customers without losing trade”.

Newquay BID Manager - Mark Warren speaks to Radio Newquay. PRESS PLAY to listen:

Mr Warren also raised concerns about wage increases alongside wider operating costs, saying that while rises to the National Minimum Wage were “well-intentioned”, he struggled to see how workers would benefit “if the businesses they rely on for employment are no longer viable”. He said this pressure was compounded by “rising energy costs, business rates, insurance, supply chain pressures and general cost-of-living increases that small business owners absorb daily”.

He cited figures from UKHospitality, which predicts that without further support, 963 restaurants, 574 hotels and 540 pubs could close across the UK in 2026 alone. Mr Warren said a “significant proportion of closures continue to be in sectors such as pubs, banks and essential services, eroding the diversity and resilience of our town centres”, adding that while short-term support had been directed towards pubs, many other high street businesses had been “overlooked entirely”.

He questioned why, at a time when “Amazon and other global online retailers continue to extract vast profits”, greater accountability was not being placed on large corporations rather than increasing the burden on independent traders.

Mr Warren warned that continued pressure could lead to the disappearance of town centres, saying the ambition of “vibrant, thriving high streets will not be realised if these pressures continue unchecked” and that “high streets will simply cease to exist”. He added that “businesses are already on their knees, and many more closures will happen on your watch unless urgent action is taken”.

He also acknowledged the efforts of Newquay MP - Noah Law, saying he “is genuinely trying to support businesses in Newquay”, but added that “despite these efforts, businesses on the ground are seeing no meaningful relief”.

Radio Newquay has invited the Treasury to comment on Mr Warren’s correspondence.