BBC in town featuring effects of high business rates

The BBC's Emma Simpson with local MP Simon Danczuk filming in Rochdale town centre

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The BBC's Emma Simpson is in town today filming for tonight's six o'clock news.

Local MP Simon Danczuk has been with Ms Simpson explaining "how out of touch business rates are killing our town."

Ms Simpson has visited a business that serves award winning fish and chips in the town centre that is closing due to the huge cost of business rates.

At a Rateable Value (RV) of £39,750, the multiplier of 47.1p gives annual rates of £18,722.25 to be paid by the chip shop owner.

Rateable Value of £39,750 yet the business is just paying £10,000 rent. Therefore, this year from April 2013 to April 2014, business rates are £18,722.25, nearly double the rent.

At a RV of £39,750 rates payable in 2015/16 will be about £19,850.

If the government postponed rates revaluation had gone ahead and the assessment fell to £10,000 (the rent on 1 April 2013) then even if UBR had to increase to 56.9p, as the Government forecasted, the amount due would be £5,690.

Therefore, the postponement of the revaluation for this shop will cost whoever occupies it next £14,160!

Local retail champion Paul Turner-Mitchell says: "The figures are horrendous and show that Rochdale will never recover unless business rates are reformed."

Mr Turner-Mitchell, who was part of the team that recently published the Grimsey Review, covering all aspects of commercial and social activity impacting on town communities including high streets, added: "This is why in the Grimsey Review we advocated immediately reinstating the revaluations and then to move to annual revaluations."