PLANS to open a fashion boutique for budding young designers have been thrown into doubt after the council refused to reduce the £14,000 business rates bill.

Not-for-profit organisation Fashion-Enter believed Boscombe’s Royal Arcade was the perfect site for its third shop, following the success of units in Croydon and Barking.

They pledged to work with students, unemployed people and “Neets” (those not in education, employment or training) to showcase the work of local fashion students and regenerate the area.

They were offered two vacant units by local businessman John Butterworth but their plans hit a major stumbling block when their application for discretionary rate relief (DRR) was refused.

Whereas Croydon and Barking councils both agreed to waive their business rates under the scheme, Bournemouth says the company does not qualify for a reduction in the £14,000 annual cost.

Vanessa Isaia, development manager for Fashion-Enter, said: “We didn’t think for a moment there would be a problem.

“We are a community-based organisation and we do not make a profit. All our efforts go into helping the unemployed, students, disadvantaged people and showcasing local talent.

“Local fashion students are really behind the idea and are asking when it’s going to open. We’ve got some really talented people in this area who will all go to London if we don’t help them here.”

Cllr Stephen MacLoughlin, leader of Bournemouth council, said: “We always welcome new start-up businesses such as Fashion-Enter Ltd to Bournemouth and value their investment in the Boscombe area.

“As with any business starting up we provided Fashion-Enter Ltd with the necessary support.

“Economic regeneration officers have met with the organisation on several occasions and provided them with local knowledge as well as information on how to access potential grants.”

But he said the council restricted DRR to minimise the impact on council taxpayers.

Only organisations that are local and run by and for mainly Bournemouth residents qualify.

“If we grant Fashion-Enter Ltd DRR then it sets a precedent for another 230 organisations across Bournemouth which could cost the council tax payer approximately £490,000 per annum,” he added.