BATTLE lines are being drawn in one of West Somerset's most historic villages, where traders have accused the National Trust of "pulling up the drawbridge" and threatening their livelihoods.

Dunster Castle, which was given to the charity in 1976 by the Luttrell family, wants to open a cafe within its grounds, claiming the 50-seater on-site facility will increase the 115,000 visitors it attracts each year by a further 10,000.

But local businesses say the move will turn the grade one listed castle into a one-stop visitor attraction and mean tourists will simply bypass the village altogether.

And after trust management refused to drop the proposal for the 20-table cafe, opponents have set up an action group, launched a petition and are about to undertake a survey to demonstrate just how much trade they stand to lose.

Christine Moore of Visit Dunster - the local tourist and trade organisation - said feelings were running extremely high in the village.

She said the castle's property manager William Wake could have been left in no doubt about the widespread opposition to the proposal following reaction at Dunster's annual parish assembly last week, where he spoke about the plans.

"The majority of traders and residents feel very strongly about the way the castle is trying to pull away from the village," said Mrs Moore, who runs Chapel House Crafts and Tea Room in West Street with her husband.

"There are already 14 places in Dunster where people can eat. In the past we have suggested that if the castle wants its own cafe, it should lease one of the existing properties in the village.

"We are not against competition but we know that if this goes ahead many visitors will just not bother to come into the village.

"The castle is only two minutes away from the village shops, which is why we believe this proposal is both greedy and unnecessary.

"It's a moral issue, as much as anything. Is the National Trust about making as much money as it can or about conserving things?"

Mrs Moore said more than 2,000 people had already signed the petition, including many National Trust members.

She said having a cafe in the castle could have a detrimental economic effect on every local business and that in the long term, jobs could be affected not only in the shops, restaurants, pubs and hotels but also local builders, decorators, window cleaners and village organisations and charities that rely on visitors to survive.

Mrs Moore said the trust's "first act of aggression" - the decision to install a food concession selling Cornish pasties within the castle grounds for a nine-day trial over Easter - had resulted in a 75 per cent drop in takeaway turnover at the village shop and deli.

"We are determined to combat this threat to our livelihoods and defend the well-being of the village," she said.

"There are a lot of sad people in this village who would like the local management of the castle to adhere to the National Trust policy on tourism 2009 - The Way Forward - which aims to 'support local economies and work with local economies'.

"At the moment we all feel as though the sword of Damocles is hanging over us."

Jonathon Collier, who runs Exmoor Jeweller in the High Street, while his wife runs the neighbouring Kiwi Gallery, said the castle was one of the main reasons people visited Dunster.

"Having a cafe in the grounds will mean that the village will lose that fresh blood and the number of visitors will decline.

"It won't just be a handful of jobs because in five years' time I believe half the shops in Dunster will be empty - it's that serious."

Robin Dasgupta, owner of the Castle Coffee Shop, described the castle's proposal as "ludicrous".

"We've faced this threat from the National Trust three times in the last eight years or so," he said.

"The whole situation has been mishandled. We are being treated as if we are small shopkeepers who know nothing, yet many of us have held major jobs in former careers.

"The castle is guilty of poor management and lack of communication."

Mike and Rowena Bushen, who have run the Dunster Water Mill and Tearoom, which is owned by the National Trust, fear the proposal could decimate their business.

"Around 75 per cent of our trade is from the tearoom and we believe we would lose around half of that side of the business if the cafe goes ahead," said Mr Bushen.

"We are open for seven months a year but we have to survive for 12 months on the income we make.

"We have a full repairing lease and the trust is trying to put up our rent at the moment. We only knew about the cafe proposal a month ago because the trust haven't had the decency to consult us properly - they have shown a total disregard of our situation."

In a bid to defuse the criticism, the castle's property manager William Wake sent a 'round robin' letter to every resident and business in the village before the recent heated parish assembly.

In it he said he felt concerned and "personally upset" by the level of anxiety the cafe proposal appeared to have caused.

He said his vision was for the castle and village to work in harmony - even for the village to feel that the castle partly belonged to them as it was owned by a charity which looks after "our best heritage for the benefit of the nation" .

"I am happy to work with village businesses and other organisations to provide more links between the village and the castle and more reasons for visitors to explore both the village and the castle," he said.

Mr Wake said he was hoping to "rise above any unproductive hostility" and has asked people with concerns to drop in and see him in the bar of the Luttrell Arms on any Wednesday for the next three weeks between 5.30pm and 6pm.

This week he told the Free Press that if the proposal stacked up financially and could overcome any planning issues, the cafe could be open for business early in 2011.

He refused to disclose the two locations being considered for the facility, although the business community maintain both the stables and the yard currently housing garages are under investigation - both of which are outside Dunster's core retail area as defined in Exmoor National Park's planning policies restricting new shops or commercial development.

Mr Wake said he appreciated people's concerns: "But we believe we will see a lift in visitor numbers that will benefit everyone.

"We are responding to customer requests - a cafe is our most frequently requested facility and we do not believe that providing one will have a significant impact on village businesses because we do not believe that the castle is the sole reason people visit Dunster, which is a beautiful and interesting village."

Mr Wake said the castle needed to increase its revenue to cover the £550,000 annual running costs.

Major projects - such as the recent roof repairs - were in addition to this and grant aid, which was not guaranteed, typically covered just 30 to 40 per cent of the costs.

He said he had written the round robin letter in response to an anonymous circular delivered to all residents and various posters that had appeared around the village.

And he said that he had received a number of calls and letters - around seven in total - from people supporting the cafe proposal, for which he was extremely grateful.

"We are currently carrying out an options appraisal and although no decision has been taken, this is something we would very much like to do.

"But, equally, we would love to work positively with the whole business community to promote Dunster more effectively."