New Quay businesses have joined together and threatened to withhold business rate payments until Ceredigion County Council U-turns on its decision to allow seasonal vendors to pitch up next to them.

The authority has allowed mobile food wagons to set up along roads lining the town’s seafront - the prime locations for attracting tourists.

The businesses, led by Malcolm Thomas who owns ice cream shop Creme Pen Cei, say the presence of the vendors will steal customers, lead to job losses and eventually closures of struggling shops.

The Cambrian News spoke with a host of traders and residents who say businesses are suffering during ‘really difficult times’.

It is believed the street vendors need only pay about £400 to pitch up for the season – and they aren’t required to pay business rates.

Mr Thomas said: “I just don’t understand the council – they must be off their heads. Business owners are getting together, and we’re going to demonstrate and withhold rates until they take these things away! It’s only the six weeks of the summer and a couple of bank holidays that we’ve got to make our living in. This will destroy little places like New Quay. It’s a travesty, it’s ridiculous – it’s robbing the existing businesses.

“We’re living hand to mouth now and we pay rates all year and then the council brings people in to basically rob us!

“The council is just looking at it as a chance to make some money and saying to hell with the traders in New Quay.”

Mr Thomas says many of the vendors are established businesses with several outlets, who would be undercutting smaller rate-paying traders.

A little further up South John Street, which overlooks New Quay’s famous blue flag beach, is the clothing and gift shop Box of Delights.

Its owner, Dave Edwards, added: “It is concerning and will be detrimental for other businesses. These are difficult times. The overheads for these people aren’t as much as ours. And yet the council is opening the flood gates for people in competition with us. I think all businesses feel the same – and I imagine it’s the same in Aberaeron, Cardigan, Aberystwyth, Aberporth.”

A county council spokesperson said: “Following the success of more outdoor trading in other areas, the new opportunities will add to the vitality and appeal of New Quay by providing people with a wider choice of outlets to visit.

“The number of opportunities was limited and are for an initial one season trial following which it will be reviewed.

“The new opportunities were advertised and licences granted to those who applied and met the criteria in the tender exercise.

“The licences also address an issue of previous unauthorised vendors operating in New Quay.

“The council would advise traders from withholding payment of rates as action will be taken to recover unpaid rates.”