Montgomeryshire Assembly Member, Russell George, has said that the role of charity shops on Welsh high streets was important for society and for local economies but there had to be a ‘level playing field’ with other small business when it came to selling new goods.
He made the comments after a recent visit to the British Heart Foundation (BHF) Cymru’s shop in Welshpool, where local staff and volunteers raised their concerns about proposed changes to business rates.
A recent report commissioned by Welsh Government Business and Enterprise Minister, Edwina Hart AM, calls for cuts to the rate relief given to charity shops in Wales. BHF Cymru shop staff and volunteers in Welshpool told Mr. George that those changes would mean substantial hikes in business rates, which would threaten their shop’s survival.
Mr George, who has also recently met theChief Executive of the Charity Retail Association to discuss the proposed policy change, said the Welsh Government’s approach of just focusing on the thresholds for charitable rate relief was examining the issue in isolation and did not address the wider issues of high street decline. He added that the role of charity shops needed to be considered as part of a broader strategy to regenerate high street trade but there had to be ‘greater parity’ with other small businesses if charitable organisations were going to sell new goods in their shops.
Commenting, Mr George said:
“I believe the role of charity shops on the Welsh high street is important for our society and for our local economy.
“We must recognise the valuable contribution these shops make to the charitable organisations they represent and the essential services this provides, which will often include health research, nurses and the procurement of life-saving technology.
“Yet, there are concerns from other small businesses on the high street that some shops that sell new goods are getting a competitive advantage because they receive significant levels of rate relief.
“However, I am a huge supporter of all small business in Wales and I don’t believe that penalising one sector is the most effective way of regenerating the economy.
“If the high street as we know it is to survive, then charitable organisations and small private businesses must work together with Government to support all aspects of our high streets.
“That is why I believe it is essential that the Welsh Government addresses not only the issue of wholly or mainly donated goods but also it needs to commission a detailed consultation with a comprehensive impact assessment in order to examine what goods charity shops are able to sell.
“We must level the playing field to ensure other business is not stiffed, whilst maintaining important third sector presence on our high streets.”
Picture: Russell George Am is pictured with the Manager of the BHF shop in Welshpool, Russell Vaughan and with Powys County Councillor, Ann Holloway.