Despondent market stall owners claim they are being run out of business after a 350 per cent hike in the cost of occupying a pitch.

Merton Council’s increased charge for a remote pitch licence has left traders facing a bill of £1,200 a year compared to the previous annual fee of £320.

Jackie Manion, owner of Gorgeous Grub, a snack van based in the King Georges’ Road Industrial Estate, claims she is one of several stall owners that could be forced to close if the increase is not reversed.

She said: “I’m struggling now, but for me to fork out £1,200 in August - well there’s no way I can do it. It’ll be the end of my business.

“I’ve heard that the market in Mitcham is in real decline for the same reason - they’re all struggling to run their stalls.

“It just can’t be justified when all we pay for is a parking space. The council says the amount charged covers the cost of a licensing officer but I’ve never seen him.”

Labour Councillor Mark Betteridge, who is lobbying for the fee to be reversed, said:“The council seems determined to drive these traders out of business.

“I can’t see how it would cost a huge amount of money to put this decision on hold until these traders have weathered the recession.”

Councillor David Simpson, Merton Council cabinet member for environment and leisure services, said: "The increase in rates for the remote pitch licence come at a difficult time for Merton Council. Due to budgetary limitations all monies to support remote pitch licences now need to be raised through fees. In support for small businesses this fee has been set at the same rate for around seven years, since 2002, but unfortunately the council, like everybody else, is seeing increased costs.

"Merton Council is keen to support business in these difficult financial times; as this fee still only amounts to £3.65 per day the council hopes that traders will see the need for this change and continue to trade in the borough."