Traders who claimed their area of the city centre was being left to rot have been offered a financial support package by the city council.

The Birmingham Post recently highlighted how more than 50 independent traders surrounding St Philips Cathedral formed a pressure group and threatened to hold a Saturday strike to show what will happen if they are forced to shut up shop.

But the city council is now offering the businesses a lifeline with a package of financial support and business advice even pledging to cut business rates for those badly affected by road works.

The small and medium enterprises including hair salons, jewellers, clothes stores, gift shops and specialist retailers formed the Save Our City campaign, saying re-routed buses have cut footfall by half.

They argue that since the Bullring opened in 2003 there has been a dramatic shift in the focus of the city centre, and they expect the improvements at New Street Station to divert attention from the cathedral zone once more.

This year, re-routed buses and work on the Midland Metro at Moor Street Station has also taken its toll on footfall in Great Western Arcade, Corporation Street and Temple Row, with some firms claiming they are facing closure within the year.

So under the name of Birmingham Tenants Association the traders have been urging landlords, Retail Birmingham and the city council to help save the citys independent traders.

They have lobbied the city council to reclassify small and medium businesses in the Cathedral district, claiming they are still paying prime retail business rates despite trading in what has become a secondary retail location.

Following an initial meeting with council leader Sir Albert Bore, and a formal round-table meeting with Sir Albert, senior representatives of the council and Centro, the businesses are now being offered some immediate help.

The Valuation Office Agency, which sets the business rates collected by the council, has confirmed reductions of 7.5 per cent and 12.5 per cent in rateable values for 48 premises in Bull Street and Corporation Street, backdated to the start of the roadworks in July.

The city council is also drawing up a support package which could include a hardship fund, similar to that offered to businesses affected by last years riots, as well as marketing and business advice.