Falmouth's only fancy dress shop is to close after eight years as the owner says rising business rates have made his business unprofitable.

Lawrence Fenton opened Party Zone on Berkeley Vale in 2008, and has had steady business ever since, supplying costumes and accessories for a wide range of annual and community events and serving the community and a growing number of student customers.

But between rates and rent he is paying nearly £1,000 per week to keep his business open, before any other overheads, and said "it's just too much money now."

With "a massive hike" in rates, from £27,000 to £31,000, Mr Fenton said he will be paying more to the council than he does in rent within a few years' time.

He said: "I like the shop and I like the location in town, but it's just silly what the rates are."

For the next financial year Cornwall Council have increased their estimation of the rentable value of the premises, which Mr Fenton said is now far higher than the actual level of rent he pays.

He said: "There's been massive hikes in the rates every year. It's just getting silly.

"I said 'your rates go up quicker than the rent, your rates will be more than the rent in five years time.'"

"They wonder why shops are closing, we are still in recession, everyone knows it apart from the government. There's businesses closing left right and centre."

"The council are not interested in reality, they are interested in fiction."

Mr Fenton, 67, has announced a half price closing down sale at the shop before it closes for good on January 20, and will have to ensure he is out of the premises by January 28. After that he may take a break, or retire completely.

He said: "We've had a lot of customers say that they're very sorry to see us go. They don't like multiples [chain stores] they're too boring, they like independent stores because they've got something different."

Party Zone is one of several business closures to have hit Falmouth recently, with the Cutty Sark pub also having shut its doors.

It had been reported locally that the pub, which was only refurbished and reopened last year, had also had troubles with its finances. It has since been listed for rent at a guide price of £38,000 a year.

And at the weekend Penryn bridal store Lavender Rose announced that it would be closing on March 31. In the interim, the shop will be meeting all existing orders, and the shop will remain open part-time as the owner pursues other employment.

A licensing application has been submitted to Cornwall Council for the Party Zone premises at 1 Berkeley Vale.

The request for an off-licence, selling alcohol seven days a week between 7am and 11pm, has been submitted by Conviviality Retail Ltd, the national company which owns the Bargain Booze and Wine Rack chains.