Norwich City Council defends plans for 8.3% rent hike for market traders
It's feared some traders may go bust because of the rising costs
City Hall has defended plans to increase rents for market traders but could not say if it will make a similar increase for its other properties.
Norwich City Council told traders it would be hiking their rent by 8.3pc in May. This lead to fears some may go bust due to the added cost pressure, on top of spiralling prices for stock, Covid recovery and a cost of living crisis putting people off spending.
But council bosses have said they need the cash to pay for services.
Josh Worley, a trader, pleaded once again for the council to scrap this increase.
At Tuesday’s council meeting Mr Worley said: “Traders need more support than ever, yet this Council has decided instead to raise our rents by 8.3pc, costing some businesses on the market hundreds more pounds a month.
“Additionally, traders were given no warning about this
rent increase, meaning businesses which might struggle to keep up with the rent increase had no time to consider their next steps.”
Mr Worley said it was a “devastating blow” to the people who keep the market going, which he described as an “integral” part of the city.
Adam Giles, the city council member responsible for the Norwich market, said the authority “appreciates the financial challenges faced by traders”.
However, Mr Giles said traders have been supported during Covid with rent discounts and from 2016-2021 the council has not raised rent by the retail price index increase – a measure of inflation the council sets rents by.
Mr Giles said footfall remains strong and there would also be no increase in service charges and would work to make the market as attractive as possible.
He added: “The council is, I’m afraid, under significant financial pressure and needs to maintain services it provides to the most vulnerable.
“I’m afraid these simply pressures do not allow us to reverse the rent increase at this time.”
Mr Worley questioned if the council would be raising rents on its other commercial properties, which include a gym in Kent and a cold store in Northamptonshire.
He said: “It would be interesting to know how much this council is planning to increase rents for these properties, compared to the 8.3pc for the small independent traders on Norwich Market.”
Mr Giles admitted he does not know the answer to the question and he would have to check with colleagues.