Ludlow traders facing 150 per cent rates rise

About 200 businesses in the town will see a rate rise of up to 150 per cent according to calculations, with traders saying the increase could lead to closure of the independent retailers that the town has built its reputation on.

Andy Boddington, Shropshire councillor for Ludlow North, said he and town councillor Glen Ginger had worked on estimations for hundreds of Ludlow's businesses.

"Rateable values here are going up by 37 per cent compared to a rise of about 10 per cent nationally," he said.

"I am the first to say that there is good news in the Government's package – nearly 400 businesses in Ludlow will pay no rates at all over the next five years, that's all the small cafes, hairdressers, butchers and many others. Business rate relief will provide a total saving of £1.3 million for the smallest businesses in Ludlow.

"But there are 200 local businesses, mostly in the retail sector, that will be hit hard by the business rate increases. They include some of the best known shops and pubs in Ludlow town centre, which will be facing business rate rises of up to 150 per cent over the next five years."

Among them will be one of Ludlow's oldest retailers, Bodenham's clothes shop, which was founded in 1860. Owner Roger Curry said he would end up with a drastic rise in part because of the large frontage of the building, even though the increase does not reflect the footfall in a small town like Ludlow.

"How can someone like me in a town of 10,000 people be compared to someone in a town like Shrewsbury?" said Mr Curry.

"It's as if Ludlow is paved in gold, but actually we are very far from that. There are going to be casualties of these rate rises, it's going to be shocking."

Tim Vaughan, of The Queens pub, said: "The British economy needs small businesses like ours. I'm not exaggerating when I say it will put many of us out of business, without a doubt."

Councillor Boddington said: "Four in five of our town centre retailers are independents, not national chains. That makes our town quite different from town centres dominated by shopping centres and standard sized shopping units.

"We also have many shops in prime locations that might be in side streets in other towns – places like Silver Pear, Castle Books, Valentyne Dawes Gallery and Broad Bean."

He said a Ludlow Chamber of Commerce survey showed that one in 10 independent retailers fear they will have to shut their doors because of the increase.

"That's frightening for the future of our town centre," he said.

"The Government needs to wake up quickly to the impact this revaluation will have on town centres and market towns across the country.

"Ministers seem completely unaware that the rates hike will permanently damage town centres like ours," he said.