A SMALL shop and a pub in Malvern Wells and Upper Welland could be hit if the Government changes the rules on rate relief for rural shops.

The Government introduced the rate relief in 1998 to throw a lifeline to struggling village shops and pubs.

But now it is proposing to change the rules so that Malvern Wells will no longer be classified as a rural area.

This will mean the Post Office/general stores in the Wells and Upper Welland, plus the Hawthornes pub, would lose their subsidies.

Christine Kenyon, of Malvern Wells post office, said: "We are really the last shop in the Wells. If we were to go, it would particularly hit the elderly and those who don't have cars, because the bus services here are not very good."

John Tretheway, Wells member of Malvern Hills District Council, said: "Small shops like these are an endangered species. Over the last few years we have lost the post office and general store at the Wyche and the shop on Fruitlands and last May the shop opposite the bus terminus closed."

He said the move would save about £1,184, a small sum to the council but a big difference to a struggling business.

"Village shops and pubs are very important in the community and we do not want to see any more being lost," he said.

MHDC has agreed to write to the Department of Transport, Local Government and the regions, urging them not to change the rules.