Wigan market traders' anger at VAT decision

Flashback to last year when independent councillors showed their support for Wigan Market traders, as they protested about Wigan Council forcing them to pay VAT.

Months of disputes over the tax levels traders in the town’s markets must pay seemed to have come to an end when the town hall said it would shoulder the VAT burden, to avoid stallholders shelling out for rent hikes.

However, shortly after the decision was made the council sent a letter out saying new traders would still have to pay the full 20 per cent VAT rate and a discount for paying by direct debit was being abolished.

Traders and politicians backing them accused the local authority of stabbing them in the back, while expressing alarm over how new people will be attracted to work in the market hall.

However, the town hall has hit back, saying these are HMRC laws that it has no choice but to abide by.

Mike O’Connor, who is co-chair of the Wigan Market Traders Federation, said: “Traders can’t believe it. They feel like they’ve been stabbed in the back.

“Quite a few people used the direct debit facility which they’ve now lost, and for anyone new coming into the market VAT means it’s £240 rather than £200.

“It’s a lot of money and they have absolutely no chance of selling any new stalls with it.

“This is already a failing market, as everybody in the town knows. Footfall is diminishing and the bus station has made no difference because people got out of the habit of going to that part of the town when it was closed.

“We see Wigan Council investing hardly anything and it’s disappointing. “They say they are showing they care about market traders by paying the VAT and then they do this. It makes you laugh.”

Coun Paul Maiden, an independent representative for Hindley Green ward who has backed the traders through the VAT dispute, said: “The council is trying to talk about rejuvenating the market, so to do this is diabolical.

“We’ve been in this fight for seven months and there was no talk of this during the negotiations. They should have been upfront about it.

“It’s just typical Wigan Council, trying to claw a bit back.

“You can polish this up how you like but it’s a rent increase. We’ve already lost market stalls because people couldn’t even face the prospect of VAT.

“The council is supposed to be bringing new people into the market and yet it’s shrinking.”

Wigan Council strongly hit back at any suggestion it was not doing enough to revitalise the market, and the town centre as a whole, and said it was bound by national rules about charging VAT on stalls.

Becca Heron, director for economy and skills, said: “We have been advised to implement the charge by HMRC, this is not a policy which has been decided by the council.

“We’re committed to helping our markets thrive and supporting local businesses which is why we have decided to take action to make sure those affected do not lose out and have offered to foot the bill for those currently not VAT registered by offsetting it with a reduction in rent.

“This will cost us £170,000 a year, but we feel it is the best option to back local businesses.

“The success of our town centres is a vital issue for our residents and the borough as a whole and their future viability is one of the highest economic priorities at the council.

“Through the redevelopment of the Galleries we will be putting significant investment into Wigan market and possibly relocating it to a more central position. We are also considering investment options for Leigh market.”