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Wales’ new recycling laws and a reduction in business rate relief is leading to a “perfect storm” for the high street, a councillor has warned.

This month, businesses in the retail, hospitality and leisure sectors have seen the amount of tax they pay to the Welsh Government increase after a temporary relief was reduced.

Instead of getting 75% off their bills, they are now only getting 40% off. In England this figure remains at 75%.

Mojo King is a men’s designer clothes shop in Caerphilly, and owner James Parker believes this could spell the end to his business.

Mr Parker told Caerphilly Observer how the shop on Pentrebane Street in Caerphilly town has been struggling since moving from Clive Street in 2023.

He said: “We’ve been established since 2016 – and back at the old shop things were going well.

“We had to make the move due to the market closing/building works and we’ve struggled to get our name out there since moving.

“I’m now in a pretty dire situation honestly. I’m battling the council for some kind of support, but this rate relief cut could be the final nail in the coffin for me.”

Independent group leader and Blackwood councillor Nigel Dix has been against the Welsh Government’s decision to reduce the relief since it was first proposed last year.

He said: “I’ve spoken to many businesses in Blackwood alone who are seriously concerned with the current situation.

“Blackwood currently has a record 29 empty units. We’ve recently lost two banks and a major retailer and I fear this is leading to the perfect storm when combined with the cut and new recycling scheme too.”

New recycling laws in Wales means businesses now have to separate their recycling further.

One business that’s feeling the impact of both is Maxime Cinema on Blackwood High Street.

Steve Reynolds, from the cinema, told Caerphilly Observer it’s costing Maxime £2,000 a month to remove its rubbish.

Mr Reynolds said: “We haven’t had the help we probably need here in the film industry. Ticket sales are still down around 25% from pre-pandemic levels and it is tough.

“That rates grant would have been very helpful at 75%, especially as the cost to recycle has increased, as well as wages – which is well-deserved however.

“Our full rates now sit at around £50,000 a year – that’s £900 a week.”

Despite rising costs, Mr Reynolds said the cinema has been reluctant to pass them onto the customer, and hasn’t made a ‘significant’ price increase since 2017.

“We’ve increased the booking fee slightly, but now is not the right time to up prices. We fully appreciate the squeeze on the public, and know without families coming along to watch films we wouldn’t have a business.”

Mr Reynolds added how he is still optimistic about the future of the film industry’s impact on the high street.

He said: “We’re a major contributor to the economy here in Britain and we need support.

“The cinema should be a habit not a treat, and whilst the industry has gone through some tough times recently, we’re confident moving forward.”

Mr Parker at Mojo King is less optimistic however.

He said: “Costs are just increasing all of the time. I put a post on social media recently explaining how I’d only had a couple of sales in three weeks.

“I just can’t see us staying honestly, but we will until the bailiffs come.”

Cllr Dix concluded: “I have raised my concern with the council, asking that they engage with business and provide the support they need to remain open.

“Many businesses are small and operate within very tight margins. This is not the time to be cutting support and introducing a costly recycling programme.

“We all want to do what we can to ensure that we recycle, however we must ensure that in so doing we do not kill the high street.”

Deputy leader of the council, Jamie Pritchard, said: “I totally understand that businesses really do feel the pressure, with factors such as utility costs and online retail changing the way we shop.

“Here in Caerphilly, we’ve implemented a town centre first policy, but I do agree that Welsh Government should be reflecting on the concerns of businesses.

“I’d also add that more radical change in relation to business rates needs urgent attention. This is ultimately a Welsh Government decision however.”