Cambridge shop owners feeling the cost-of-living pinch

The cost of living, soaring rents and a proposed congestion charge are prompting several business owners in Cambridge city centre to reconsider their location. Is the cost of doing business in Cambridge simply too high?

When Robin Chappell shut up shop for the last time in Cambridge a week ago, he admitted he was "rather pleased to be leaving".

He has run Chocolat Chocolat in the city for almost 15 years.

He has now moved the business to Hatley St George, near Sandy in Bedfordshire, taking online orders and organising workshops and courses.

"The cost of doing business in Cambridge as an independent is extraordinarily high," the 64-year-old says.

"We found a location that is easy to get to, easy to work with and is more business friendly.

"Cambridge has become more and more focused on large chains. We've had customers say it's easier to go to Milton Keynes than Cambridge."

The rent for his 36 sq m (365.5 sq ft) shop in the Grand Arcade was about £50,000 a year.

"Cambridge will end up as a clone town full of international brands," he adds. "The reduced footfall makes it very hard - you have to scrabble for every pound of turnover.

"We are looking forward to putting the challenges of operating an independent business in Cambridge behind us."

Neil Mackay is the managing director of Mackays hardware store on East Road, which has been in the city since 1912.

"The rising cost comes through on the invoices all the time but there's also the hidden costs," he says.

"Rates, the cost of electricity and gas have been astronomical.

"For a long time Mackays have realised that Cambridge has become inhospitable to business, a war on motorists and cars.

"Everything we sell is heavy and need motorised transport to move them. High parking rates are discouraging people from coming in.

"Local business colleagues are all feeling the strain.

"There's a strong likelihood that we will move out of Cambridge because of the congestion charge - it will effectively drive business to our competitors outside the zone.

"We're part of the furniture here. There are huge disincentives for people to come into Cambridge and it's causing problems."

Councillor Alice Gilderdale, 25, deputy leader of Cambridge City Council, said the authority had "real sympathies with business owners in the city".

"They are facing successive crises, from the cost of living crisis to the pandemic to Brexit, all making it incredibly difficult to do business and these have cumulative impacts," she said.

The Greater Cambridge Partnership (GCP) has proposed a £5 congestion charge to be introduced by 2027-28.

An expansion of buses worth around £50m a year would be paid for by a charge on driving in Cambridge between 07:00 and 19:00 on weekdays.

"Nothing has been decided on the congestion charge - the proposal that was tabled would only be coming in in the late 2020s," councillor Gilderdale added.

"During the pandemic we gave grants of over £54m to support businesses with rate relief an other grants. We cannot control the rate of rent rises in the city.

"It's really sad to hear these businesses are leaving. It's important that we discuss how the cost of doing business is impacting them."

Joseph Board, 32, runs The Hot Sausage Company street stall in Fitzroy Street.

He says soaring costs are making business owners reassess their presence in Cambridge.

"I've already moved house because of the cost of living here," he says.

"The only thing holding me back is that the Hot Sausage Company started here on Fitzroy Street in 1986 - it's that personal strive to keep it where it started.

"I'm not even the worst affected. There's a fruit and veg stand here that uses two vans and a truck to bring it to the street - that'll be £70 a day in congestion charge.

"The only thing you can do is put your prices up or leave Cambridge. But there's only so much I can sell a hot dog for. We can't sell them for eight pounds a piece."

He says he has seen an increase in footfall to the "cheaper end of town" at the Grafton Centre, away from the "high end or branded stores" like Apple or John Lewis.

Staying in Cambridge, he says, does not make financial sense. The firm has already moved its warehouse to Waterbeach.

"I've looked at Ely - it feels like an up-and-coming city," he says.

"It has free parking and good bus routes - and a great community spirit."

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