Tenovus, the biggest charity shop chain in Wales, has scrapped plans to open a further 14 stores across the country as the Welsh government prepares to respond to recommendations to cut business rates relief for charities.
The Welsh government is due later today to publish its response to the business rates review led by Professor Brian Morgan, which recommended radical changes to the rates regime on Welsh high street and caused outrage among charities.
But Tenovus, which has 66 shops and opened four in the year to March 2013, has pre-empted the government’s response and abandoned plans for further expansion. Chief executive Claudia McVie told the BBC that it may even have to close some of its existing stores if ministers accept the recommendations to cut rates relief from 80 per cent to 50 per cent.
She said the money Tenovus will lose if such cuts to rates relief go ahead, would cover the costs of two cancer support advisers.
According to the Charity Shops Survey 2013, published today by Charity Finance and Fundraising magazines, Tenovus’ shops had income of just under £5.2m in the last financial year and a profit margin of 15.7 per cent.
The Charity Retail Association has already warned that nearly a fifth of Wales' charity shops could close if the Welsh government implements the proposed changes.
