TRADERS in Cardigan are concerned over an increasing number of charity shops in and near the town centre which are exempt from business rates.

With already numerous outlets in prominent positions on the main thoroughfare, a tenth is setting up in business this week with the British Red Cross opening a shop at Shire Hall in High Street.

The charity is appealing for volunteers and also donations, including books, clothing and furniture.

A nearby businessman said “I have to pay £14,000 a year business rates while these shops get away scot-free – it’s not a level playing field.”

Another trader said “With charity shops taking over the town centre income for the local authority will be limited. These shops are in competition with businesses having to contend with high rates. Surely they should be made to pay something.”

Cardigan Traders chairman Martin Radley told the Tivy-Side “All our members support charitable organisations with donations of raffle prizes and in other ways but charity shops have grown out of all proportion and it is now charity business.

“We have discussed the matter of high rates with AM Elin Jones.

“There is an argument that it is better to have charity shops than empty premises but there is also a case for the charity outlets to make contributions in respect of business rates,” he said.

Town mayor Cllr John Adams-Lewis, who is also a county councillor, said “I sympathise with the traders and it is a concern that the local authority is missing out on a lot of revenue at a time of austerity when we must find savings of £25m over the next three years.

“If there is a shop already in existence I don’t think we can do anything in planning terms and it is a very difficult situation,” he said.

A spokesman for the British Red Cross said “We are looking forward to a long association with Cardigan and we are extremely grateful to local people for their support.”

Charities are entitled to apply for relief from rates on non-domestic properties that are 'wholly or mainly used for charitable purposes'. Relief is given at 80% but local authorities have the discretion to remit all or part of the remaining 20%.