Charities and commercial property landlords in Wales will suffer if a proposed cut in business rates relief is approved by the Welsh Assembly – A recent review of the rating system suggests cutting relief on charity shops from 80 per cent to 50 per cent and restricting eligibility.
If implemented it could result in the closure of over a third of charity shops in the principality, according to the Charity Retail Association (CRA). Consequently this will lead to many more vacant high street properties and a loss of income for landlords.
Speaking on behalf of the CRA, which represents 70 per cent of charity shops in Wales, Wendy Mitchell warned that low income shoppers will be particularly hard hit by the threatened closures.
She continued; “There will be a reduction in services and jobs lost and the associated benefits of charity shops on the high street will be lost.”
A spokesman for cancer charity Tenovus, which occupies 44 retail premises across Wales, said that with the exception of one, all of them had been empty for up to two years before they assumed occupancy.
“In some cases the previous tenant had gone into administration and so the landlord was very relieved to have a reliable tenant with a secure covenant,” he said.
A landlord of Tenovus agrees, saying that the charity was the only organisation prepared to sign a long-term lease.
He said; “If Tenovus hadn’t come on board, I suspect my property would have remained empty for at least another 12 months.
“Not only would this have been terrible for me from a business point of view but also for the high street and local community as an empty shop doesn’t bode well.”
The Welsh government said it was ‘sensitive’ to the concerns of charities and landlords and it was seeking all views on the proposals. This consultation is due to continue into the new year before a decision is reached.
