Traders in Goodramgate are objecting to the street being classed as a primary shopping area in York's new draft Local Plan.
Goodramgate - traditionally a street of small and independent local traders - is in the same class as busy central streets like Coney Street, Davygate and Parliament Street, which host leading High Street chains.
Goodramgate trader Helen Spath, of Tulliver's health shop, has written to the council objecting to the classification and a letter has gone out to all traders warning them of the listing in the plan.
She says traders always thought Goodramgate was a secondary shopping street and are now concerned that the classification could have an impact on rents and business rates.
The city council says Goodramgate has been classed as a primary shopping street since 1994.
But if traders want that changed now was the ideal time to write to the council while the draft Local Plan was at the consultation stage.
Ms Spath, of the Goodramgate Traders' Association, said: "We think we should be on a par with Micklegate or Gillygate."
Both these streets have been marked in the plan as ordinary shopping streets.
She added: "Business rates are based on rateable value, which is based on rents."And if you are in a primary shopping area you would expect top-whack rents."
Fellow Goodramgate trader Eleanor Francis says she is "angry and upset" by the classification and also plans to object.
She said: "It's horrific. Our rates are going to zoom up."
She said the city council seemed to care more about out-of-town developments than the city centre. She added: "Tourists say how lovely it is to wander in and out of local shops.
"That is part of York, but what is going to happen if they don't help us.
"All they seem to be doing is putting up rents and rates and they are going to lose traders."
Ian Thomson, of the City of York Council, said traders could object to the plan, but its aim was to protect the nature of Goodramgate.
He said: "The aim of this planning policy . . . is to encourage shops in shopping streets and limit the number of other uses such as banks and building societies."We have identified Goodramgate as a primary shopping street. We would like the street to remain dominated by shops."
People have until June 19 to comment on the draft Local Plan.
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