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Council accused of 'actively harming' Wolverhampton economy after 'staggering' closure rate rise

A Wolverhampton councillor has accused the city council of "actively harming the local economy" after the staggering rate of business closures in the city was revealed.

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The number of businesses closing in Wolverhampton has risen drastically

A document from the city council has showed that between January and March of this year, the rate of closures rose by 170 per cent when compared to the last three months of 2022.

Councillor Ellis Turrell, who is vice-chair of the council’s scrutiny board, has called this "staggering" and "appalling", and has criticised the local authority for pursuing what he called economically "harmful" policies.

In particular, he has spoken damningly of the pedestrianisation work in the city centre and its impact on local businesses.

Councillor Turrell, who highlighted the shocking figure during a recent board meeting, said: "This is a staggering and appalling statistic, to see a huge rise in business closures in the city over such a short period of time, which reflects incredibly badly on the city council.

"Businesses have repeatedly warned about the damaging impact of the pedestrianisation works on Victoria Street, North Street and surrounding roads in the city centre.

"While the economic climate nationally is undoubtedly tough, I believe this 170 per cent rise is a direct consequence of the council’s policies.

"They have not properly engaged with local businesses, and have pushed ahead with measures to restrict vehicle access to the city centre."

However, the acting leader for Wolverhampton Council has said this figure represents the entirety of Wolverhampton, not just the city centre, reflecting a national trend concerning struggling businesses.

He also said it would be "incorrect" to link these citywide figures specifically to the city centre improvement works.

Victoria Street, Wolverhampton Coronation bunting Victoria St

Councillor Stephen Simkins, acting leader of the council and cabinet member for inclusive city economy, said: "These figures relate to businesses across the whole of Wolverhampton – not just the city centre - and reflect the national trend.