The owners of Idris Stores in Corris say they are being forced to limit their growth to survive a VAT threshold.

Frances and James Garrard said growth is the goal for many businesses but for them, “it has become a risk”.

They told the ‘Cambrian News’: “We run a small café, shop, and community space and we are being forced to limit our own success just to stay open.

“After three years of running the business, we are approaching the UK VAT registration threshold (£90,000). Crossing it would mean raising our prices significantly, absorbing additional costs, and potentially losing staff or closing altogether.

“For many businesses, growth is the goal. For us, it has become a risk.

“We have worked hard to understand what is sustainable in a rural, highly seasonal area.

“Demand fluctuates with tourism and school holidays, and outside peak periods, footfall simply isn’t there. We cannot realistically scale the business enough to absorb the impact of VAT.

“At the same time, rising costs—energy, supplies, wages, and National Insurance—have pushed our turnover up without increasing our margins.

“We are not a high-profit business; in fact, we are currently operating at a loss and paying ourselves very little. We do this because we care about our community.

“To avoid crossing the threshold, we are now cutting hours, reducing what we offer, and turning down opportunities to grow. This is not how a healthy business should operate. If we are forced to close, the impact will go far beyond us—affecting local jobs, suppliers, tourism, and a vital community space.

“We believe change is needed. Whether that means raising the VAT threshold, introducing a more gradual system, or reducing VAT for small hospitality businesses, the current model is not working for rural communities. We are not asking for subsidy—we are asking for the ability to survive.”