Doncaster has the lowest five-year business survival rate in the UK, with just 33.5% of firms still trading five years after starting, according to data from insolvency practitioners at Liquidation Centre. Of the 10,105 businesses started in the city between 2012 and 2019, only 3,385 were still trading five years later.
The city, in South Yorkshire, was ranked 58th and last in a list of UK towns and cities where firms are given the best chance of survival, following a study by LEI Register using data from the Office for National Statistics.
Trader calls for more support after Budget
Jay Malik-Amir, owner of Venezia Design, a boutique on East Laith Gate in the city centre, said the city has not recovered from the pandemic. "I think Covid was the start of it, to be honest," he told the Daily Express. "The city hasn't recovered from Covid. Despite what everyone says, it's been impossible to claw it back. We've been forced to make the best of a bad situation here."
The 60-year-old, whose shop opened 17 years ago, said it is the only boutique left in the city, with others forced to shut over the last 14 years due to a mix of factors. "Covid got rid of some boutiques and independent shops here," he added. "We all had meetings and video calls about how to cope, but people just panicked as they couldn't afford their rents and just gave up. I think it's so sad."
Closures and regeneration plans
Several notable closures have hit Doncaster since the pandemic, including House of Fraser on April 19, 2024, Wilko, and Argos. Independent businesses such as X-ited, a long-standing clothes shop, The Hatfield Chace, a popular pub, and an OK SHOP have also shut.
Businesses have been gripped by lower consumer spending and footfall, tighter operating margins and macroeconomic headwinds, such as inflation and high energy costs. This is despite long-term regeneration plans from the City of Doncaster Council, which has partnered with urban developer Capital & Centric on a major £200 million project to revitalise the Colonnades Shopping Centre, as well as the proposed Waterdale Precinct, which will include cafes, bars, and restaurants.
The council has also pledged £5 million to acquire empty and disused city centre sites, with a further £3 million designated for safeguarding historic assets and revamping shopfronts.
Budget measures and business rates relief
Chancellor John Healey confirmed a package of support to provide "breathing space" for businesses and high streets this week. From April 2027, the threshold at which shops, hospitality and leisure businesses in England become liable for business rates will rise from £12,000 to £18,000, a move expected to take around 70,000 smaller firms out of business rates altogether.
Mr Healey also confirmed exclusions aimed at "cleaning up" high streets, announcing that vape shops and adult gaming centres will not be eligible for the new business rates relief. Higher-stakes gambling machines will see tax hikes from 20% to 25%. The Labour Government has also pledged to clamp down on VAT avoidance by online sellers, with major online marketplaces such as Amazon and eBay legally required to collect and account for VAT on behalf of businesses selling on their platforms from next October.
While the support has been welcomed by business owners in Doncaster, some are calling for authorities to go a step further. Mr Malik-Amir believes more help could be offered to reduce business rates, as well as measures to improve city centre footfall. "I think there should be loads more support from the Government, if I'm honest," he says. "We've had nothing from them in 16 years. And I'm the only shop on this street that pays rates - nobody else does - which is unfair."
Specs Gonzalez Coffee Shop, founded by YouTuber Ferdinand Umeh, known as Specs Gonzalez, and Sally Jeavons, is located by the train station in Doncaster and has noticed lower footfall than expected since opening in June. Ms Jeavons, 36, explains how parking is an issue in and around the city, meaning people tend to avoid travelling to the area. "Being very close to a train station, we did expect to have a lot more footfall than we actually do," she says. "We would always love more footfall but what we find is a lot people are driving, and not using public transport, and can't park nearby."
Ms Jeavons is calling on the council to do more to clamp down on anti-social behaviour issues in the city, noting a "drastic difference in drug use" and that people are put off by drug users and beggars. Alice Shaw, manager of fish and chip shop Mother Hubbard's, says "Doncaster isn't as busy as it used to be," while Emma Cane, assistant manager of The Glass Strawberry cafe, says homelessness and anti-social behaviour are becoming increasingly prevalent issues.
Mr Malik-Amir insists Doncaster has an unfair reputation, saying, "I've lived here all my life and there's no danger here. We've got a lovely town centre." A City of Doncaster Council spokesperson said Doncaster has experienced some of the strongest growth in all of Yorkshire over the past two decades, with GDP growing 50% between 2004 and 2023, and highlighted the Business Doncaster team's support for start-ups, including advisory services, start-up grants, access to finance initiatives and business mentoring.
