Running a small business in London used to be about passion. You found a corner spot, stocked your shelves, and served your community. In 2025, passion alone doesn’t pay the rent.

Let’s be honest. The cost of doing business in London has turned from “challenging” to “how on earth are we supposed to survive this?”.

What the numbers are saying

1. 1.Inflation is still biting. CPIH (which includes housing costs) rose by around 3.7% year-on-year as of early 2025.
2. 2.Food inflation is worsening. Some industry bodies predict food prices could reach 6% higher year-on-year by Christmas.
3. 3.Business rates relief has been watered down. The RHL (Retail, Hospitality & Leisure) discount has dropped from 75% down to 40% for eligible businesses starting April 2025, with a cash cap of £110,000 per business.
4. 4.Fringe London areas are seeing big jumps in business rates. For example in Farringdon, Southwark, Camden, rates per square foot have more than doubled since 2010.

If you run a corner shop or small boutique, that’s not an expense you just absorb; it’s the difference between staying open and locking the door for good.

Staff costs and survival mode

Finding good staff has become harder than ever. You want to pay people fairly, but when large chains offer more money and flexible hours, how do you compete? Many owners are cutting hours or doing the work themselves. I’ve met shopkeepers who haven’t taken a full day off in months.

And it’s not just wages. Deliveries cost more. Card fees have gone up. Even basic supplies feel like they come with “London tax”.

The quiet collapse of local retail

Across London, hundreds of shops are teetering. Reports suggest more than 600 retail units on major high streets could shut this year due to spiralling costs. Yet small businesses still pay around a third of all business rates, while only contributing 9% of the country’s total output. That balance is clearly broken.

The reality is simple: small shops are paying a big city price.

Why I care

When I started Onelivery UK, it wasn’t because I wanted to run another delivery company. It was because I saw how fragile local retail had become. Store owners were losing customers, not because their products weren’t good, but because delivery, logistics, and overheads were eating them alive.

We built a system to make things simpler, affordable local delivery, transparent pricing, no upfront fees. Because every pound matters when you’re trying to keep your business alive in this city.

The way forward

If you’re a retailer in London, the message is clear: keep your costs lean, stay flexible, and don’t wait for another relief scheme to save you.

The city is tough. But with the right partnerships, local ones that actually understand your day-to-day challenges, you can still thrive.

That’s what Onelivery UK stands for. Helping local businesses move faster, smarter, and without the London-sized headache.

Your shop deserves to survive this storm. Let’s make sure it does.