The chairman of Oxford's Covered Market Traders' Association is closing his family bag shop and reopening as a barber because he claims trade has been damaged by the Oxford Transport Strategy.

Alan Lester, pictured left, said takings were down at Delcoys bag shop, which was launched by his father-in-law Alf 45 years ago. Mr Lester has run the shop for 22 years.

Mr Lester, 57, blamed the introduction of the OTS two years ago for making it difficult for customers to carry large bags away from the Covered Market. It is the third shop in the market to close in the last two months because of the OTS.

Two months ago, Clays butcher shop closed while another market butcher, Gibbard's, has become a picture framer.

Mr Lester said: "I will reopen my shop as The Market Barber, where I'll be providing a service instead.

"It will have an old-fashioned theme, and provide hair cuts, wet shaves and men's accessories.

"Bringing back parking to Broad Street has come far too late for my bag shop. The OTS really hit our trade."

Mr Lester has led Covered Market traders in their long-running rent dispute with the city council.

Earlier this year, Oxford City Council won a decision at Birmingham High Court to raise rents by more than 26 per cent. Mr Lester said a Court of Appeal hearing would be held between April and July next year.

"We are still open to negotiations with the council to settle the matter," he said.

Oxfordshire County Council commissioned a report that found "no evidence" the OTS had damaged trade.

Traders are convinced they have lost out and last month Rescue Oxford, a pressure group opposed to the strategy, won its campaign for the return of short-stay parking to Broad Street.