TRADERS in St Albans city centre are celebrating a victory after being granted a vital lifeline – a reduction in their business rates.

Over the past year the Review has reported on the long-running campaign, spearheaded by Paul Hargreaves from Mail Boxes Etc, for many traders in Holywell Hill to have their crippling rates reviewed.

Mr Hargreaves has said although it has been a long campaign, his efforts have paid off.

He said: “The valuation last year, something which occurs every five years, took place in 2008 at a time when the economy was healthy, but soon after rents in the area tumbled following the closure of a number of shops.”

After being hit by a huge £140 a month increase on his rate in April last year, Mr Hargreaves realised he was not the only business in Holywell Hill fearing for its future.

He added: “The 2010 valuation had a huge impact on us and put a huge pressure on local shopowners, such as the St Albans Music Centre which was threatened with closure after 52 years in Holywell Hill.”

Independent shops have struggled to survive and other have come and gone – including Little Wonders toy shop which was forced out of the Maltings. After finding a new home in Holywell Hill, the business lasted just months due to a low footfall of passing trade and high rents and rates.

Just last month we reported on Springfield Pharmacy in Market Place which closed its doors, blaming high business rates for its failure.

The rateable value of a shop is set by the Valuation Office and is based on the area's rental value.

However Mr Hargreaves has branded this system unfair as he says it does not truly represent the dismal situation faced by traders today.

He added: “Business rates are still my biggest overhead after my rent but this is a great step in the right direction.

“It's absolutely fabulous our rates have finally been reduced, and it's a significant amount which will help our survival.

“We weren't making the money to represent such high rates, this seems to be more realistic.

“We would all like to say a big thank you to the Review newspaper for its support during our campaign.”

Mr Hargreaves also thanked St Albans MP Anne Main who wrote a letter to the head of the Valuation Office.

Welcoming the news Mrs Main said: “This is very welcome news, as I know many businesses in Holywell Hill were struggling with high rates.

“In difficult economic times like these, we need to do all we can to help local businesses, and I pay tribute to Paul for all his work on this issue.”