Stafford air ambulance shop closes after rate row

Image caption, The charity moved into the empty shop in Gaolgate Street, which was previously occupied by Shoe Zone.

A town centre charity shop has closed less than a year after opening after a row over whether it should pay full business rates.

Midlands Air Ambulance set up in Stafford last June but said it could not afford a 拢20,000 rate bill.

It said it was "extremely disappointed" Stafford Borough Council would not give it "mandatory" charity tax relief.

Stafford Borough Council said the shop was operated by a limited company so did not qualify for the discount.

However, a Midlands Air Ambulance spokeswoman said although it had a trading arm, all proceeds went back into the charity and its work.

Its three other shops in Newcastle-under-Lyme, West Bromwich and Wellington, Telford, were run in the same way and were offered "very reasonable rates", she said.

Image caption, Staff and volunteers had been offered other roles after the closure last month, the charity said

Groups can claim up to 80% discount on business rates if a property is used for charitable purposes.

Jason Levy, the charity's fundraising and marketing director, said: "Despite our best efforts and extensive dialogue, we are extremely disappointed by Stafford Borough Council's decision not to issue us with standard government mandatory business rates relief for our charity shop.

"It would regrettably increase our expenditure so significantly that the shop will not generate enough profit to help fund future air ambulance missions."

He said it would look to open more shops but was "highly unlikely" to return to Stafford while the policy remained.

Will Conaghan, spokesman for the Conservative-run council, praised the charity's "great work" adding it "gave the organisation advice on changes they could make to receive that relief - but unfortunately they have made the decision to close the shop rather than make those changes".