Massive inconsistency in business rates for pubs and clubs

The Baum will see its rates rise from £18,000 to £30,250 in April.

Some pubs and clubs will see their business rates soar in April next year, while others have stayed the same or even been reduced, and landlords and owners are up in arms at the inconsistency.

Popular pubs The Baum and The Flying Horse will see their rates almost double when the new rates come into force in 2010. The current rateable value for the Baum is £18,000 but with effect from 1 April 2010 that will soar to £30,250. The Flying Horse currently pays £34,500 but faces a massive increase to £66,500 in April.

The Litten Tree's business rate will shoot up from £57,000 to £100,000 but just a couple of doors further down Packer Street, the Dali Bar's rates are going down by £250 to £35,250.

The Regal Moon's rates went up slightly from £166,000 to £170,000.

Mark Foxley, director of a number of town centre bars, has seen rates stay the same at Mango but just around the corner, on South Parade, the rates for Pacific have soared from £11,250 to £31,000 - a near 200% increase.

Mr Foxley said: "We are amazed at the ridiculous figures. They come at a time when trading is difficult enough for virtually all retailers and sectors.

"For our sector there appears to be a great lack of consistency.

"Many businesses will simply not be able to find the money."

Simon Crompton, landlord at The Baum, said: "In the current climate and the way the town centre is at the moment this is not going to encourage business in Rochdale or encourage new companies to the town. In some cases to simply double business rates and then expect people to accept it is outrageous. I can see businesses closing and certainly no new companies coming into the town."

Rochdale Council says it has been supportive of businesses because it does not want to lose town centre trade but its hands are tied by HM Revenue and Customs' Valuation Office Agency, which sets the rateable values used to calculate business rates.

Simon Bailey, head of revenues and benefits at the Council, said: “We just collect business rates on behalf of central government and have no involvement in the valuation process. The VOA has recently conducted a revaluation exercise of business premises all across the country – as they do every five years.

“It’s important to note that while a rateable value may increase, it’s highly likely that the other figure used to calculate business rates – poundage – will decrease, although government are yet to confirm the new amount for 2010.

"The government also provides for transitional relief following a revaluation, so any increases to rates for a business are brought in gradually rather than going up overnight.

"Local businesses with any questions about their new valuation should visit www.voa.gov.uk or call the VOA on 0845 602 2010.”