Heywood Model Railway Group faces closure amid rising business rates

A long-standing non-profit organisation in the borough, is facing potential closure as its business rates continue to rise.

The Heywood Model Railway Group, which has been a fixture in the community since the late 1960s, has recently been hit with increased charges and heightened financial pressure which may be too much to continue paying.

Club secretary Phil Evans says that the club received its first-ever business rates invoice for the year 2023/2024, amounting to £600, which came as a shock to the group - but not as much as a bill of £1,032.62 which landed for the year 2024/2025, invoiced after Small Business Rate Relief. 

The group says the shock was bigger due to the fact it had never been charged rates in its long history, even when occupying various premises in the Rochdale area, including Warwick Mill. 

Despite appealing the assessment and submitting detailed accounts and a copy of their club constitution, the appeal was rejected because less than 75% of their subscription-paying members live within the Rochdale area. 

Club secretary Phil Evans told Rochdale Online News: "We feel we are being unfairly penalised because our accounts show a healthy bank balance over the last two years."

The club's accounts showed balances of £13,458 at the end of March 2023 and £12,399 at the end of March 2024, largely due to donations and bequests from former members. Once again, their appeal was rejected on the same grounds. 

Phil expressed his frustration, noting that "the large balance in the bank account is due to model railway gifts and amounts bequeathed to the club by former members who have since passed away."

The club generates some income through monthly open days, where they sell refreshments and second-hand model railway stock, and receive donations from visitors. 

However, these funds are not enough to cover the increasing costs of maintaining their 5,500 square feet of rented accommodation. 

The accounts for the year ending 31 March 2024, showed a deficit of income over expenditure, and projections indicate that this deficit will grow in the current year.

Adding to their woes, the club's rent has been increased twice in the last 12 months, and maintenance costs, particularly for a leaking roof that frequently damages layouts, are a serious concern. When the club queried the issue with their landlord, they were advised to consider moving to other premises. 

However, moving 22 layouts of varying sizes would be extremely difficult and costly.

Phil emphasised that while the business rates alone would not be the sole reason for the club's potential closure, they would certainly accelerate it. He said: "We would like Rochdale Council to take account of the facts that we are a non-profit making organisation and not a small business and remove these charges completely.”

Most members of the club are retired and find it a valuable place to share their hobby, exchange ideas, learn new skills, and meet friends. 

To raise awareness and attract new members, the club is planning an exhibition at Rochdale Masonic Hall on Saturday 2 November.

The Heywood Model Railway Group hopes that this event will draw attention to their plight and ensure the club's survival for future generations.