MANY of Abergavenny's charity shops could be facing closure, dramatically altering the face of the town, if the Welsh Government orders them to pay more towards their business rates, says AM Nick Ramsay.
Last week Mr Ramsay, the shadow business minister, attended an emergency summit debating Professor Brian Morgan's Task and Finish Group recommendation to limit business rate relief to 50 percent for larger charity shops trading in new goods.
Mr Ramsay, who recently produced a report on the Regeneration of Welsh Town Centres for the Assembly's Enterprise and Business Committee, said that this decision could cost charities millions of pounds in lost revenue and a loss of employment, work experience and volunteering opportunities.
Mr Ramsay said that the proposal could see more towns across Wales ending up with more empty properties on the high street.
Tim Reeves, the acting area manager for the British Heart Foundation in South Wales invited Mr Ramsay into the Abergavenny store to see for himself the work that goes on behind the scenes.
Mr Reeves said, "An increase in business rates would have a detrimental effect on the money available for research. The Foundation has some 800 shops, each with a full-time member of staff and a part-time assistant. The shops have a team of volunteers and in Abergavenny there are 37 members and our shops enable people to gain work-experience for the first time or to ease back those with ambitions to rejoin the workplace. We also embrace many volunteers who have learning difficulties by enabling them to join our team.
"The British government has changed the benefit system forcing people into work. And charity shops are a stepping-stone towards many people getting back into work by providing the experience and social skills needed. If shops like ours were to disappear it would make this problem worse. We may be a charity shop on the high street, but we are so much more besides."
Mr Ramsay said the Welsh Government report was tantamount to bullying these charitable businesses on the high street.
"The government has an issue over charity shops selling new goods, but I can see for myself that this is only a tiny percentage of the store's turnover," he said.
"This is purely a Welsh Government initiative which I see will lead to an increase in vacant units in all towns. I believe that if the Assembly reduces business rates across the board, there would be an incentive for more independent business to start trading from the high street.
"The Welsh Government is using bullying tactics to raise revenue, a scheme which is not even being considered by its Westminster counterparts.
"The way ahead is to get everybody, including small independent traders, talking around the table.
"We don't want the Welsh economy minister, Edwina Hart to take this decision without a debate. We need this discussed in the Senedd and then democratically voted on before a decision is made."
The Charity Retail Association is also urging the Welsh minister to reject the proposals to cut business rates relief as recommended by Professor Morgan's report, in which he argued charity shops were causing market distortion and negatively impacting other businesses.
The association's petition against the proposals already has thousands of signatures against restricting charity shop rate relief.
Abergavenny's BHF shop manager, Debbie Healey said, "Income created by donated goods to this shop is vital in our fight against heart disease, and locally has helped us provide four specialist heart nurses, 17 life-saving defibrillator machines, and fund three Heartstart groups which enable local people to be trained in emergency life-saving skills."
Mr Ramsay said that in many towns charity shops provide the footfall needed to sustain high street shopping.
"I would prefer to see business rate relief helping all small businesses and hope that the WG will look at this issue again as part of the wider problem of the decline of the high street across Wales," he said.





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