So far this year around 12,000 independent shops and almost 7,000 major chain branches have closed across Wales and England as debt problems impact the high street.

Research by the Local Data Company (LDC) found that the average retail vacancy has risen by almost 8% since last year – from 4% to 12% now.

Worst hit was Margate in Kent. A quarter of shops in the Kent town were now vacant, and the LDC said that these empty shops had “a corrosive effect upon the confidence of an area.”

Other troubled cities include Leeds, Derby and Liverpool, with vacancy rates of over 20%. Generally northern cities suffered worse than their southern counterparts.

Ivan Cooper, Chairman of debt management company Chiltern, said: “The recession has meant that people’s debt problems have escalated, so they are more reluctant to go spending on the high street.

“As a result, many shops and businesses are now encountering their own debt management issues – caused by the fall in shopper numbers – which has resulted in so many closures.”

A spokesperosn from the LDC said: “Empty shops have a corrosive effect upon the confidence of any area – and their numbers are growing.

“The damage is spread across the country and affects all levels of the retail hierarchy from the largest regional centre to the smallest high street.”