A Telford MP is launching a campaign to save Oakengates traders from possible rent increases which he believes would be a “disastrous move” for the town.
David Wright is calling for the borough council to freeze rents on business properties for the next two years and has today begun a petition for traders and customers to sign.
The borough council owns shops and offices in Limes Walk, Market Street and New Street.
Nigel Booth, who owns All Floors N Rugs on Limes walk, said rents have risen in recent years: “The council seems to be hiking up the prices,” he said. “Because the rents are rising in borough-owned properties the traders are really struggling.
“I am exiting in three months and I am moving to another shop in Oxford Street. It is a private landlord and I get twice as much space for my money.
“I understand why people like me are moving from a borough property.
And Anne Gilliam, owner of Sunshine Cafe on Limes Walk, said she was concerned over rent rises as her lease ends next June.
Mr Wright said the council should be investing in Oakengates, and not “killing off” businesses during a recession.
He said:“If the rumours are to be believed, massive rent hikes in Oakengates could spell the end for businesses in one of our most important district centres.
“I am shocked and disgusted that the council could be planning such a disastrous move which could destroy a large number of businesses in Oakengates. The council needs to come clean about what it is planning and it is time all local councillors stood up for Oakengates.”
A spokesperson for Telford & Wrekin Council said: “The council is fully aware of the difficulties many businesses are facing in the current economic climate and has sought, where possible, to assist businesses through negotiated payment arrangements.
“The council is required by statute to obtain market rents for its commercial properties. When assessing market rents there are no fixed percentage increases, each case is separately assessed. There may be changes in the rents for individual properties where evidence indicates that the passing rent is below current market rents.”
Councillor Eric Carter, cabinet member for regeneration, said the council has set aside £500,000 of its budget to regenerate the centre of Oakengates.
“This shows our commitment to the future of Oakengates by bringing in a substantial amount of investment in a difficult economic climate.”
The petition will also be available on www.davidwrightmp.org.uk