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The Forum of Private Business (FPB) in the UK is responding to the Competition Commission's assertion that independent shops are not in terminal decline as a result of large supermarkets' dominance of the groceries market, by pointing to evidence suggesting that the opposite is true.

Following an 18 month inquiry, the Competition Commission announced a raft of measures to increase competition in the market, but insisted that, although it is often difficult for them to compete with large supermarkets such as Asda and Tesco, the future of small retailers is not under threat.

However, following extensive consultations with the FPB and other organisations, the Conservative Party's Parliamentary Enterprise Group recently published the initial findings of its Commission into Small Shops in the High Street. It reiterated a warning, originally made in 2006 by the All-party Small Shops Group, that the majority of the UK's independent retailers could disappear by 2015, should the present rate of 2,000 closing every year be allowed to continue.

"Evidence that the number of independent shops in our villages, towns and cities has declined in recent years is there for everyone to see. Any report that states otherwise is ignoring a widespread and worrying trend," said FPB Chief Executive Phil Orford.

"Small businesses, especially those in the retail sector, continue to suffer as a result of the dominance of supermarkets and other large chains. While we welcome some of the Competition Commission's initiatives, we do not believe the recommendations go far enough in developing policies that will help reinvigorate our high streets and the communities they serve."

The group pointed out that the Competition Commission's own evidence showed that, since 2000, sales in supermarkets have grown by 26%, and by 19% in large convenience stores, but that specialist stores have experienced only a 1% growth in sales. The FPB is concerned that, unable to compete with their larger rivals, more and more small shops will be forced to close.

The FPB is calling for better payment practices and fairer contractual arrangements, as well as the removal of other unfair fees, such as charging suppliers 'loyalty payments' in exchange for shelf space. In addition, changes to legislation and the UK's tax regime are required to support smaller retailers. VAT-avoidance by supermarkets on items such as hot takeaway foods and goods imported via the Channel Islands, exploiting a VAT loophole, should also be prevented.