A WOMAN who raised thousands for charity with her pop-up Christmas grotto "almost fainted" when the council handed her a business rates bill for more than £5,000 – for just 42 days of trading.
Julia McClean, who set up Frost Christmas, where Stead and Simpson shoe shop used to trade on Chelmsford High Street, said she had no idea she would have to pay so much for such a short amount of time.
The mother-of-two said she had made a loss from the venture but did not regret it as she wanted to do something good for the community over Christmas, although the bill has made her think twice about opening in the High Street next December.
"We didn't make any money from the grotto this year, but I felt really good that I had set up something like this and Chelmsford was getting a grotto," said Mrs McClean, who also runs an events company she set up a year ago.
"Aquila, the property developer behind the John Lewis plan, donated £2,000 from the rent I paid to Kids Inspire, a local children's charity, and this was something good to do for the community.
"I did expect to pay business rates, of course, but I thought it would maybe be £1,000, not the £5,231 bill I got. I nearly fainted when I opened it.
"I spoke to the council and asked if there is anything they can do – I'm not a big business, it's just me, and I don't have that kind of money in my bank account.
"But they have said there's nothing they can do. I just think they should flag these things up more. I don't want to collapse my company on the basis of that bill."
Mrs McClean said the amount in business rates payable on the High Street shop was £69,500 for the year – adding that this could explain why there are so few independent shops in the city.
"It's not good for Chelmsford, and it's a shame when you think there are shops just sitting there empty. You'd think the council would want to help people who are just starting out and it isn't going to help the city – local people won't be able to get a look-in as the only people who can afford to pay rates like that are big chain stores.
"I wouldn't be able to have the grotto there again unless I started charging at least £20 per child, but I want to keep the prices down like this year so that everyone can come.
"It would be a shame not to do it again as I have all the decorations and some presents left over, but I couldn't have it on the High Street."
A Chelmsford City Council spokesman said: "Business rates are a statutory liability and the amounts charged are calculated by a combination of the rateable value, which is determined by the Valuation Office Agency, and the multiplier, which is determined by central Government.
"The amount charged to Sshhh Events Limited is correct based on the rateable value of that particular property and the period they were in occupation.
"It is the responsibility of the tenant to ensure that the space they take and the charges associated with it are affordable. Staff from the business rates team at Chelmsford City Council are happy to help potential ratepayers find out how much they can be expected to pay and would recommend that anyone thinking of opening a business in Chelmsford should make enquiries before signing any contractual agreement to occupy a premises."
