Cotswold District Council is calling for urgent government intervention to support businesses which are 'on a knife edge'.
The council said businesses in the area are facing "increasingly severe difficulties" due to rising costs, economic uncertainty, and increased taxation, with some town centres already seeing rising vacancy rates.
They have set out their concerns in a letter sent to Chancellor Rachel Reeves by Cllr Tristan Wilkinson, cabinet member for economy and transformation, calling for a more comprehensive package of support.
Mr Wilkinson said: "Town centres across the Cotswolds are under real and growing pressure.
"Businesses are telling us they are operating on increasingly tight margins, and in some cases simply cannot continue without change.
"These sectors are vital not just to our economy, but to our communities and to providing jobs – particularly for young people.
"Without further support, I fear we will see more closures, fewer opportunities and lasting damage to our high streets."
He urged the Government to reconsider changes to business rates, the withdrawal of Covid-era reliefs, and other tax measures.
Business owners across the district said the situation is becoming unsustainable.
Rob Broadbent, founder of Lynwood & Co., said current trading conditions are "very challenging", with rising employment costs and business rates forcing difficult decisions.
He said the company has had to pause expansion plans and he warned it is becoming harder to employ young people.
Alan and Andrea Richell of The Curious Wine Cellar in Northleach said current conditions are the toughest they have ever faced, even compared to the pandemic.
Mr Richell said: "We’ve had to let people go… it’s a struggle to balance the books every day."
“If I was to tell you that for every flat white we serve at £3.95, only 16p is profit… everything is against us at the moment,” Mrs Richell added.
“We don’t know how much longer we can continue to work on a knife edge.”
Despite strong visitor numbers, Cllr Wilkinson says many businesses are only surviving thanks to the owners’ determination.
He said: "These are not abstract challenges – they are affecting real people, real jobs and real communities across the Cotswolds.
"We need action now to ensure our town centres remain vibrant places to live, work and visit."
Cotswold District Council said it has limited powers to intervene and is calling on the Government to act urgently to protect high streets, support jobs and sustain local communities.
