Wolverhampton traders win reprieve in fight over rent rise

Businesses along Cleveland Street hit out at the city council after they were given letters demanding more rent and a 20 per cent VAT charge with immediate effect.

But now the authority has agreed to put the plan on ice to be reviewed again next April much to the relief of shopkeepers.

Traders had also been angry at only being offered one year contracts, which they said left them insecure.

WATCH: Traders explain anger at rent rise

However the council has also said they will now be offered the choice of three year contracts.

Wolverhampton council cabinet member for city economy, Councillor John Reynolds, said: “We very much value the contribution of these small businesses.

"These are the businesses that help give Wolverhampton its own identity and character.

“Therefore, to mitigate the VAT, which the council is obliged by the HMRC to charge these businesses, the council will absorb the cost for 12 months, with effect from April 1, 2017. Tenants will therefore not see an increase in their net annual rental charge during this period.

“After 12 months, rental charges will be reviewed. We are also delighted that we are able to offer traders in a position to renew their agreements a lease of up to three years.”

Claire Howell of Vinyl & Vintage, in Cleveland Street, said: “At least the council has listened to us and given us some flexibility.

"The biggest bug bear was the instability of an insecure contract, but now we have the option to stay longer.

"It gives us chance to forecast what business is going to be like and gives us a bit more security.

"Our rent will be increased from April 1, backdated 12 months from April. My rent will then increase 52 per cent."

Restaurant Salska on the street was initially asked for an increase of 122 per cent. Its original rent of £5,400 would increase to £10,000 plus VAT.

Other businesses include beauty salon Grožio Salonas Medinés Šukos, Property Lounge Limited, Glamazon and Supreme Furniture.