ANGRY small businesses have slammed vast price rises in the cost of advertising around Worcester following a controversial council deal with an commercial advertising firm.

St John’s estate agent Simon Cawley is one of several local business owners to continued on page 2 end sponsorship arrangements on city roundabouts after being quoted a 300 per cent price increase, following Worcester City Council’s outsourcing of advertising sales to Halifax-based firm Immediate Solutions Ltd.

The council insists it has a duty to get value for money for the taxpayer, and expects the deal with Immediate Solutions to eventually bring in an extra £50,000 a year.

But Mr Cawley said he was “absolutely livid” to receive a phone call informing him it would now cost thousands of pounds more to continue sponsoring the same roundabout where his company has advertised the past two years.

“I find it quite outrageous,” he said. “We were paying about £2,500 a year for the roundabout at Lower Wick. Then we had a call quoting £8,000!

“I said that was ridiculous - I couldn’t understand why it was such a great jump. They eventually reduced it to £6,000, but I still wouldn’t take it. I couldn’t believe the audacity. They said the new sign would be slightly bigger, but there was nothing to justify it being so much more expensive.”

Another local business owner, who asked not to be named, said he too had decided not to renew his sponsorship contract.

“For a company of our size, the prices they’re asking are far too much,” he said. “The price has trebled. I’d be surprised if there’s many small companies doing it next year.”

A third firm told a similar story, stating it too would not be renewing next year.

In a joint statement, Worcester City Council and Immediate Solutions said that with Guildhall finances in a dire state, the council must do what it can to being in extra money for Worcester.

“We’ve always sought to sell advertising on the basis of the market,” said the city’s head of finance Grahame Lucas. “We do not charge a set rate - we seek to get the best value for the space, and so for the taxpayer.

“Immediate Solutions was brought in because we wanted to make sure we get the best price, using their knowledge and expertise, and to improve the advertising product we have to offer.

“Costs of essential services are rising much faster than our income - the council has a large budget gap. Changes have to be made if we are to balance the books. We cannot continue to sell advertising space below the market rate.”