IT is claimed that a hike in business rates due to come into force could damage up to 200 businesses in Ludlow and the surrounding area.

A survey of businesses in the town is being undertaken by the Ludlow Chamber of Commerce and three quarters of those that have responded fear that they will be damaged.

According to Andy Boddington, the member of Shropshire Council for Ludlow North, the delayed revision of business rates is set to permanently damage shops in the town.

Town councillor Glen Ginger who owns an antiques shop in Ludlow town centre and Tish Dockerty of the Chamber of Commerce have also spoken out against the changes.

“Rateable values here are going up by 37 per cent, compared with a rise of around 10 per cent nationally,” said Andy Boddington.

“Most of the rise in Ludlow is in the retail sector. In part, this is due to the historic character of our town.”

It is a mixed picture because some businesses in Ludlow will not pay business rates for the next five years but it is being claimed that 200 other local businesses will be badly hit.

“There are 200 local businesses, mostly in the retail sector that will be hit hard by the business rate increases,” said Andy Boddington.

“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% over the next five years.”

Campaigners say that Ludlow is particularly badly affected because with four out of five town centre shops being independents rather than national chains it does not fit the national pattern.

“That makes our town quite different from town centres dominated by shopping centres and standard-sized shopping units,” added Andy Boddington.

He added that unlike large multiples it will be difficult for Ludlow businesses to have the legal expertise to challenge the valuation and that an appeal costs £300.

“Ludlow’s Tesco, which draws in £11 million a year more than the company average for its Corve Street store, is not facing an increase in rateable value,” according to Andy Boddington.

“Next year, it will pay £12,000 less in business rates. That’s because the big retailers have pleaded poverty and got a good deal on rateable values. Small businesses don’t have the same lobbying power.

“Ludlow Chamber of Commerce has been conducting a survey of retailers in the town. The survey is still in progress but initial results show that three-quarters of independent retailers think the business rates hike will damage their business. One in ten fear they will shut their doors because of the increase. That’s frightening for the future of our town centre.”

Andy Boddington is calling upon government to wake up to the impact of the changes in business rates and the effect that it will have on towns like Ludlow.

“Ministers are lauding that most of the smaller businesses have been taken out of business rates all together,” he said.

“That’s great. But they have forgotten a golden rule of good government – not to penalise or inhibit success. Ministers seem completely unaware that the rates hike will permanently damage town centres like ours.”

Philip Dunne MP met Ludlow Chamber of Commerce representatives last Friday to discuss how those adversely affected could provide rental evidence to challenge their rating revaluation.

Mr Dunne said: “Rate reviews happen periodically, so it is expected that some businesses will face an increase based on the market rental value of their premises. But it seems Ludlow may be facing a disproportionate rise, compared to the wider West Midlands.

"I am writing to all 76 retail businesses in Ludlow town centre who are faced with rates increases above 10% to let them know how they can appeal the Valuation Office Agency’s assessment and am encouraging them to do so. I have also written to the relevant Minister, Valuation Office Agency and the Chancellor to make them aware of my concerns.

"But I welcome the fact that the majority (108) of retail businesses in Ludlow town centre will see a reduction or freeze in their business rates, given the Government’s 100% small business rate relief increase. This means any business with a rateable value below £12,000 will pay no rates, and those rated below £15,000 will receive tapered relief. 74 Ludlow town centre businesses who would have faced higher rates under the current system, will not pay a penny more due to this measure.”